City hoteliers order tax cut for business

JAKARTA (JP): City hoteliers and restaurant operators demanded on Wednesday the city administration reduce hotel and restaurant taxes by 50 percent, in a bid to help boost their business competitiveness in the third millennium.

Owners of the Jakarta-based hotels and restaurants also demanded the city reduce their operational costs, including water and electricity tariffs.

"Seriously affected by last year's political and security instability, our businesses need the city administration's help to gear up for competition in the new millennium," said chairwoman of the Jakarta office of the Indonesian Hotels and Restaurants Association (PHRI), Yanti Sukamdani Hardjoprakoso.

Speaking on the sidelines of the association's Jakarta chapter meeting, Yanti said Jakarta operators found it difficult to compete with hotels and restaurants operating in the nearby areas of Bogor, Tangerang and Bekasi.

"The city administration charges our hotels and restaurants a 10 percent tax, while hotels and restaurants outside the city only pay 5 percent tax to their respective city administrations."

The city hoteliers and restaurant operators also requested the city administration reduce their water and electricity tariffs.

"We hope the city administration sets the water and electricity tariffs at the amount similar to the tariffs charged to industry.

"Currently, we have to pay bills similar to those calculated for individual households amount charged to individual household."

Yanti said tariffs charged to households were greater than the ones charged to industry.

"Our electricity bills can reach 40 percent of our total costs."

With the lower taxes and duties, Yanti said PHRI members could survive the competition and support the city administration's Sea and Shopping tourism campaign.

The city administration is now developing sea tourism in the Thousand Islands area north of Jakarta, while Pasar Baru market in Central Jakarta is gearing up as one of the city's tourist shopping destinations.

Yanti suggested the city administration should work to eradicate the slum image of the Pasar Baru market in its efforts to attract tourists.

"The city administration should clear the market from any bus routes and develop the are into a big sidewalk. (jun)