Provinces given the say-so in handling tourist ventures

Provinces given the say-so in handling tourist ventures

JAKARTA (JP): Hoteliers, restauraters and owners of tourist
ventures planning to open businesses in the country will soon be
able to bypass the Ministry of Tourism, Art and Culture and deal
directly with provincial tourist offices, a ministry official has
said.

Director General of Tourism I Gede Ardika said on Tuesday the
provincial offices would be authorized to issue operating
licenses for tourist-related firms and working permits for
foreigners employed by hotel, restaurant and tourist businesses
in provinces.

"The provincial tourist office will also have the authority to
asses hotel performances and issue hotel star ratings," he said.

The policy shift is stipulated in the newly approved Regional
Autonomy Law 22/1999, which gives local administrations not only
more of a say, but also more authority in handling local
resources.

Under the current regulation, authority over the tourist
sector is held by the Ministry of Tourism, Art and Culture.

Yanti Sukamdani Hardjoprakoso, president of Sahid Hotels and
chairwoman of the Jakarta chapter of the Indonesian Association
of Hotels & Restaurants, said the increase in authority for
provincial tourist offices would reduce red tape requirements.

"We don't have to deal with overlapping and unnecessary
procedures and documents. Less bureaucratic procedures will
attract more investors to do business here," she said.

She said tourist entrepreneurs and investors also welcomed a
recent government policy to pass on the authority to approve
investments from the Investment Coordinating Board (BKPM) to
provincial investment offices (BKPMD).

"The combination of direct handling of business and investment
licensing by regional (tourist and investment) offices will be
very good for business."

BKPMD will soon obtain full authority to approve all foreign
and local investments made in their respective areas. A
presidential decree will be issued soon to ratify the handover of
authority from BKPM to the BKPMD.

BKPMDs are currently only allowed to approve domestic
investment projects valued below Rp 10 billion.

Investment projects valued at over Rp 10 billion, and foreign
direct investment valued below US$100 million must be approved by
BKPM, while foreign investment valued at over $100 million
requires direct approval from the President. (cst)