Complicated Licensing Hampers Tourism Industry, Minister Says

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  • Tourism Minister Arief Yahya, during meeting with Commission X House of Representative in parliament, Jakarta, Oct. 18, 2016. TEMPO/Dhemas Reviyanto

    Tourism Minister Arief Yahya, during meeting with Commission X House of Representative in parliament, Jakarta, Oct. 18, 2016. TEMPO/Dhemas Reviyanto

    TEMPO.CO, Jakarta - Tourism Minister Arief Yahya said Indonesia`s tourism industry is hampered by licensing problems. Deregulations, he said, are an important key to the sector's success.

    "Our challenge is speed. In Indonesia, the flow of money and people are slow. And this is almost all related to licensing," he said in Jakarta, Jan. 30. 

    Arief mentioned how Japan's tourism industry managed to double its growth thanks to major deregulations. Japan's tourist influx soared from 9 million to 20 million in just two years.

    However, Arief understands that deregulations are not easy in Indonesia. Most of these obstructive regulations are issued by regional governments, which are plenty in Indonesia. 

    The easy solution, he said, is by establishing special economic zones where the central government can apply special rules, thus allowing for easier licensing.

    Aried suggested that the government's agenda of creating "10 new Balis" is executed using a special economic zone method.  That way, all licensing procedures can be done through just one door.

    "Investors complain about the length of time it takes to get all sorts of permits. With a one-door policy, licensing will be easier and faster," he said.

    Vindry Florentin