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