TEMPO.CO, Jakarta - The Investment Coordinating Board (BKPM) explained that it is difficult to prevent foreign startup companies from entering Indonesia and suggested that domestic hotel owners must continue to innovate to attract the market.
BKPM Business Empowerment Director Pratito Soeharyo suggested the Indonesian Hotel and Restaurant Association (PHRI) formulate new strategies considering that Airbnb has helped promoting affordable local hotels.
The main problem between Airbnb and hotels, according to Pratito, lies on partnerships and strategies. He is certain that the issues that have arisen can be solved.
“It would be a difficult situation if we rely on local hotels if Airbnb is banned altogether. People use the services provided by Airbnb when traveling overseas,” said Pratito on Thursday, November 23.
Another complaint voiced by the PHRI is related to the tax regulation that is burdening the hotel industry. PHRI Chairman Haryadi expressed his objection to bear the burden of the taxes imposed on foreign companies, especially considering that the cost of renting a room through Airbnb gets discounted by 30 percent.
M JULNIS FIRMANSYAH
