More govt fees planned for tourism industry
More govt fees planned for tourism industry
Bambang Nurbianto, The Jakarta Post, Jakarta
A draft bylaw on regional fees under deliberation at the City
Council includes 29 new items, most of which are eyeing the
lucrative tourism industry.
Should the draft bylaw be approved on April 17 as scheduled,
all managements of hotels, restaurants, tourist resorts,
cottages, bars, travel agents and nightclubs will have to pay
permit fees and yearly permit renewal fees.
Existing Bylaw No. 3/1999 on regional fees does not require
the payment of any fees for the establishment of those
businesses, but the new bylaw will impose fees ranging from Rp
125,000 (US$13.8) to Rp 30 million.
The establishment of a five-star hotel, for example, will cost
the management Rp 20 million in fees and another Rp 10 million
for each subsequent year to extend the permit.
The current bylaw only charges 23 public services including
parking services, amusement parks and zoos as well as hospitals,
but the draft bylaw will include 52 public services.
The city administration outlines three main groups of regional
fees -- fees for general services, business services and permit
issuance.
Chairman of the deliberation team Muhammad Firmansyah said on
Saturday that the new bylaw would boost city revenue if approved.
"After the approval of the draft bylaw, revenue from regional
fees could double what has been set in the budget for 2005," he
told The Jakarta Post.
The city administration expects Rp 326 billion from regional
fees this year.
The total city budget in 2005 is more than Rp 14 trillion.
In the original version of the draft, the city also stipulated
an increase in fees for health services at public health centers
and city-owned hospitals.
As an example, the rate for class III A services at city-owned
hospitals was supposed to be increased from Rp 15,000 per night
per bed to Rp 40,000.
The article was then cut by Governor Sutiyoso as instructed by
the central government who wanted regional administrations to
provide affordable health services for the poor.
Sutiyoso wrote to council speaker Ade Surapriatna on March 30,
asking that the council delay the implementation of the new fees
for health services.
Firmansyah said that his team had finished discussing the
draft bylaw and the draft would be discussed with council leaders
on Monday before the plenary hearing on April 17.
Partial list of new permit fees
No. Businesses Establishment Permit renewal
permit in rupiah in rupiah
1. Nightclub 5,000,000 3,000,000
2. Discotheque 5,000,000 3,000,000
3. Live music 2,000,000 1,000,000
4. Karaoke: A class 5,000,000 2,000,000
Lounge B class 3,000,000 1,500,000
5. Sauna 5,000,000 3,000,000
6. Massage: A class 5,000,000 2,500,000
parlor B class 3,000,000 1,500,000
7. Spa A class 5,000,000 2,500,000
B class 3,000,000 1,500,000
8. Movie A class 1,000,000 500,000
House B class 500,000 250,000
C class 250,000 125,000
9. Bowling 2,500,000 1,250,000
10. Billiards A class 3,000,000 1,500,000
B class 2,000,000 1,000,000
C class 1,000,000 500,000
11. Sports center 3,000,000 1,500,000
12. Golf A class 30,000,000 15,000,000
B class 20,000,000 10,000,000
C class 15,000,000 7,500,000
13. Barbershop 250,000 125,000
14. Fishing ponds 300,000 150,000
Source:Draft bylaw on regional fees