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)