ASIATODAY.ID, JAKARTA – The Ministry of Communication and Information of the Republic of Indonesia has threatened to block six online travel agents (OTA) because they do not yet have permits as Electronic System Operators (PSE).
The six OTAs are Booking.com, Agoda.com, Airbnb.com, Klook.com, Trivago.co.id, and Expedia.co.id.
The Indonesian Hotel and Restaurant Association (PHRI) also responded to this.
PHRI General Chair Hariyadi B. Sukamdani said that the problem is not only about registering permits, but also regarding tax collection.
“For us, the problem is not just registering, it’s the tax treatment we want. If you register, today the registration is complete. But that’s not the problem. “The problem is that the level playing field must be the same,” said Hariyadi at the Fairmont Hotel Senayan, Thursday, March 14 2024.
Hariyadi previously expressed concerns among entrepreneurs regarding the presence of foreign OTAs. The reason is, these foreign OTAs charge relatively high commissions to the hotel industry that partners with these OTAs.
“OTA does not pay taxes so it is charged to the hotel because OTA does not have a permanent business entity in Indonesia,” said Hariyadi in his official statement, Thursday, February 22 2024.
Apart from that, the gap between the increase in OTA valuations and hotel revenues in Indonesia is expected to hamper the increase in OTA market penetration because foreign OTAs provide large promotional capital injections while suppressing hotel prices in Indonesia.
Meanwhile, the Ministry of Communication and Information has threatened to block the six OTAs. The reason is that the six OTAs do not comply with the provisions stipulated in the Minister of Communication and Information Technology Regulation Number 10/2021 concerning Amendments to the Regulation of the Minister of Communication and Information Technology Number 5/2020 concerning Private Electronic System Operators.
The government has given 10 days from Thursday, March 14 2024 to apply for a permit as a PSE to the Ministry of Investment/Investment Coordinating Board.
The Ministry of Communication and Information has previously issued a similar warning. The warning has been sent since Tuesday, March 6 2024 and foreign OTAs are required to register within five working days of the letter being sent.
Director General of Informatics Applications, Ministry of Communication and Informatics, Semuel Abrijani Pangerapan said that the six OTAs had responded to the warning and their party was preparing the necessary requirements to then submit to the Investment Coordinating Board.
For this reason, Samuel extended the deadline to 10 days.
“They have answered, they are preparing, asking for time,” he said. (ATN)
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