Indonesian Political, Business & Finance News

Tourism development needs more private participation

Tourism development needs more private participation

JAKARTA (JP): Minister of Tourism, Post and Telecommunications Joop Ave encouraged private firms here yesterday to improve their contribution to the development of the country's tourism, post and telecommunications sectors.

"It's the turn for private firms to sit in the driving seat, while the government is the 'co-pilot'," Joop said at the first session of a two-day workshop of his ministry.

He said that both state-owned and private companies should carefully weigh the public interest when setting prices and tariffs.

"The status of the state-owned postal service PT Pos Indonesia has just been changed into that of a profit oriented firm. Next year, the company will launch several new services. But I hope there won't be any price hikes," he said.

The two-day workshop was officially opened by President Soeharto on Wednesday, together with a two-day tourism consolidation forum which ended on Thursday evening. The forum was aimed to create a consensus on the country's tourism development plan.

The events, especially the consolidation forum, focused on the country's tourism sector which has been targeted to become the country's major foreign exchange earner by 2005.

The forum was divided into three commissions, macro economy, policy and pricing.

A number of executives of private firms participating in the pricing commission acknowledged that the cost of domestic air transportation and hotels in Indonesia is still high.

"It's necessary to create a new formula for the pricing arrangement," an executive said.

The recommendations agreed on in the forum included a plan to encourage both domestic and foreign tourists to visit places outside Java and Bali and the restructuring of domestic air transportation networks.

Joop said yesterday that he will report the recommendations to President Soeharto.

"I'll report the results to the President in the next two or three months," he said, adding that other government institutions are expected to take part in the promotion and development of the tourism industry.(icn)

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