The Implementation of Tourism Business

Background

The Governor of DKI Jakarta issued the Governor of DKI Jakarta Regulation Number 18 of 2018 on the Implementation of Tourism Business ("Pergub DKI Jakarta No. 18/2018"), which came into force since 12 March, 2018. Pergub DKI Jakarta No. 18/2018 stipulates the implementation of tourism business that aims to:

  1. regulate the governance of registration, organization, guidance, monitoring and evaluation of tourism business;
  2. providing legal certainty for tourism industry actors in conducting tourism business; and
  3. providing information to all interested parties in the conduct of tourism business.

Tourism Business Field

  1. Business of tourist attraction, covering the type of business by managing:
    1. natural tourism attraction, including activities (i) providing infrastructure and facilities for tourists; (ii) business management of natural tourist attraction; and (iii) providing infrastructure and facilities for surrounding communities to participate in business activities of natural tourist attraction. Type of businesses above managing (a) islands; (b) sea; (c) beach; (d) coastal areas; (e) streams; (f) situ/lake; (g) cultivation of agricultural, flora and fauna; and (h) urban parks and forests.
    2. cultural tourism attraction, including activities (i) providing infrastructure and facilities for tourists; (ii) business management of cultural tourism attractions; and (iii) providing infrastructure and facilities for surrounding communities to participate in business activities of cultural tourist attraction. The type of businesses above managing (a) historical and archaeological sites; (b) cultural preserve; (c) historical buildings; (d) monuments; (e) museums; (f) local cultural village; (g) art and cultural activities; (h) art and cultural galleries; (i) a pilgrimage object; and (j) religious tourism.
    3. Artificial tourist attraction, including activities (i) providing infrastructure and facilities for tourists; (ii) business management of artificial tourist attraction; and (iii) providing infrastructure and facilities for surrounding communities to participate in activities. Type of businesses above managing (a) building architecture of the city; (b) airport, port and station; (c) traditional markets; (d) modern shopping centers; (e) places of worship; and (f) artificial tourist places.
  2. Business of tourism area, including activities a. lease of land which has been equipped with infrastructure as a place to conduct tourism business and other supporting facilities; b. providing buildings to support tourism activities within the tourism area; and c. areas devoted exclusively to halal and/or thematic tourism. Type of businesses above manages (i) area and tourist route; and (ii) special tourism areas.
  3. Business of travel transportation services, covering the type of businesses a. road transport; b. railway freight tour; c. river, lake and tourist shuttles; d. freight ferriage island tours; e. domestic sea freight tours; and f. international sea freight tours. The type of businesses above have the following criteria: (i) transporting tourists; (ii) transportation services to and from tourist destinations as well as within tourism areas; (iii) using motor vehicles and/or non-motorized transport; (iv) not entering the terminal; and (v) may not be used other than tourist purposes. Business of travel transportation services if in form of non-motorized vehicles, it may only operate within the tourism area with the knowledge of the relevant Regional Administrators and Agencies.
  4. Business of travel services, covering the type of businesses a. travel agency; and b. travel agent.
  5. Business of food and beverage services, covering the type of businesses a. restaurant; b. bistro; c. bar/drink house; d. cafe; e. food sales center; f. catering services; g. bakery; h. coffee shop; i. canteen/cafeteria; j. moving sales of food and beverages; and k. sales of floating food and beverages.
  6. Business of providing accommodation, covering the type of businesses a. hotel; b. condominium hotel; c. serviced apartments; d. campground; e. stop-over caravan; f. villa; g. cottage; h. hotel management services; i. senior or elderly tourism occupancy; j. house tours; k. motel; 1. residential tourism; m. tourist resorts; n. adolescent inn; and o. guesthouse.
  7. Business of entertainment and recreation activities, covering the type of businesses:
    1. sports leisure activities (covering the sub-type of businesses (i) golf courses; (ii) golf training arena (driving range); (iii) pool house/ball pool; (iv) swimming pool; (v) a tennis court; (vi) bowling (vii) center of physical fitness, (viii) sports center, (ix) skating, and (x) fishing pond);
    2. film screening (the type of film screening as referred is a place to watch a movie show by using the big screen, the movie image is projected onto the screen using the projector);
    3. art arena (covering the sub-type of businesses (i) art studio, (ii) art gallery, and (iii) performing arts building);
    4. games (covering the sub-type of businesses (i) manual, mechanical and/or electronic arcade game arena for adults, and (ii) manual, mechanical and/or electronic arcade game arena for children/families);
    5. night entertainment (covering the sub-type of the businesses (i) nightclub; (ii) disco; and (iii) Pub);
    6. home massage (covering the sub-type businesses (i) griya massage, and (ii) steam bath house);
    7. recreational parks (covering the sub-type of businesses (i) recreational parks, (ii) theme parks; and (iii) wildlife park);
    8. karaoke (covering the sub-type of businesses (i) executive karaoke, and (ii) family karaoke);
    9. Impresario services/promoters (covering the sub-type of businesses (i) music entertainment by presenting artists, (ii) entertainment by presenting public figures, (iv) sports entertainment, and (v) cultural entertainment); and
    10. hair care services.
  8. Business of meeting, incentive trip, conference and exhibition organizer (it is categorized into business activities of a. meeting, b congress, conference or conventions c. incentive trips and d. exhibitions);
  9. Business of tourism information services (a business provides data, news, features, photographs, videos and research results on tourism distributed in form of printed, and/or electronic materials);
  10. Business of tourism consultant services (a business provides advice and recommendations on feasibility study, planning, business management, research and marketing in the field of tourism). The types of businesses above cover: a. tourism consultant services; and other business tourism management;
  11. Business of guiding services (a business provides services and/or manages tour guides to fulfill the needs of tourists and/or the needs of travel agents tour guides services provided by someone in the form of guidance, information and instructions on tourist attraction as well as assisting for everything needed by tourists in accordance with their professional ethics);
  12. Business of water tourism, covering the type of businesses a. rafting tours; b. rowing tours; c. diving tours; d. fishing tours; e. surfing tours; f. dock tours; g. sailboat tours; h. water skiing tours; i. motorboat tours; and J. water bike tours;
  13. Spa business

Other Provisions in the Field of Tourism Business

Tourism business that has not been regulated refer to the determination of the Minister of Tourism, the Governor may stipulate the type of business and other sub-type of business for each area of tourism business upon the proposal of the Head of Tourism and Culture of the Province of DKI Jakarta (“Dinas”) subject to the provisions of rules and regulation. The conducting of the business, type and/or sub-type of tourism shall be in accordance with the established business standards.

Capital and Business Form

Capital may take the form of:

  1. all of whose capital is owned by a citizen of the Republic of Indonesia;
  2. joint venture capital between citizens of the Republic of Indonesia and foreign nationals; and/or
  3. all capital owned by foreign nationals.

Any tourism business may be held in the form of an individual, Indonesian legal entity or Indonesian business entities are not legal entities in accordance with the provisions of rules and regulations. Forms of business using capital may be classified as follows:

  1. small and micro business, may be individuals, business entities or legal entities;
  2. medium business may be individuals, business entities, or legal entities; and
  3. large business in the form of legal entity.

Registration of Tourism Business

Every person or business entity in conducting a tourism business is required to register a tourism business to obtain a Business Register of Tourism ("TDUP"), which is submitted to the Regional Device which organizes One Stop Integrated Service (“PTSP Daerah”). Specifically for tourism businesses that have foreign capital and domestic investment who has cross-provincial scope and/or under the provisions of rules and regulation becomes the authority of the Government, the registration of tourism business shall be submitted to the Investment Coordinating Board of the Republic of Indonesia (BKPM).

Registration of tourism business is carried out to:

  1. each location (covering the type of businesses a. business of tourist attraction b. business of tourism area c. business of food and beverage services except the type of catering business, d. business of providing accommodation, e. business of organizing entertainment and recreation activities except for business type of impresario/promoter service, f. business of water tourism, and/or g. spa business.
  2. each office (covering the type of businesses a. tourist transport services which owns and/or controlling its vehicles, boats or trains; b. travel tour services, c. food and beverage services for catering services, d. organization of entertainment and recreation for business type of impresario/promoter e. tourism information services, f. tourism consultant services, g. tour guide services, and h. water tourism, except the sub-type of business of tourism dock.

Specifically for marine tourism for sub-type of businesses of fishing, registration of tourism business can be conducted either at each location or each office.

Business Registration Stages

The stages of registration of tourism businesses in the PTSP Daerah  include of:

  1. application;
  2. file examination;
  3. field technical review; and
  4. issuance of TDUP.

All stages of tourism business registration as referred shall be implemented in free of charge.

Issuance of TDUP

  1. PTSP Daerah issues a decree on TDUP if:
    1. application file is stated in correct, completed, valid and factual; and
    2. the results of the field technical review which recommends for can be further processed in accordance with the provisions of rules and regulations.
  2. The time of issuance of TDUP is no later than 3 (three) working days after the fulfillment of the provisions referred to number 1 above.
  3. TDUP is valid as long as the tourism business is still running its business activities.
  4. TDUP is a basic requirement in the implementation of tourism business certification.
  5. TDUP may be granted to tourism entrepreneurs who organize several tourism businesses within 1 (one) location and one management. TDUP as intended is given in a TDUP document.

Update of TDUP

TDUP update shall be made if there is an amendment of condition to the matter stated in TDUP decision include of:

  1. changes in business facilities;
  2. add business capacity;
  3. expansion of land and business buildings;
  4. name of tourism entrepreneur;
  5. address of tourism entrepreneur;
  6. name of the board of business entities for tourism entrepreneurs in the form of business entities;
  7. name of tourism business;
  8. location of tourism business;
  9. address of tourism business management office;
  10. number of deed of establishment of business entities for tourism entrepreneurs in the form of business entities or card numbers;
  11. citizen identity for tourism entrepreneurs;
  12. individuals; and/or
  13. name, number, and date of technical license owned by tourism entrepreneur.

Entrepreneurs shall apply for such amendment, file it in writing or electronically to PTSP Daerah with no later than 30 (thirty) working days from the date of 1 (one) or more changes in the conditions as referred to above.

Registration of Temporary Performance

Any tourism business organizer who will hold a temporary performance shall obtain a Business Register of Temporary Performance (“TDPT”) from PTSP Daerah in accordance with the provisions of rules and regulations. Specifically for TDPT of foreign artist/sportsperson, Dinas conducts assessment/censorship of the performances through a regional entertainment appraisal team established on the basis of a Governor's Decree with members of relevant technical institutions. The regional entertainment appraiser team shall issue a letter of approval for a maximum of 1 (one) business day after the censor is eligible; it is subsequently submitted to the PTSP Daerah as a technical requirement for the issuance of TDPT.

For temporary performances at entertainment events before and during the new year in form of art performances, music, movies and other entertainment with decor/ornaments/decorations that describe/characterize the welcoming atmosphere of the new year held in place or outside of the tourism business either indoor or in an open space, it is required to obtain TDPT. Specifically for temporary performances conducted on campus and/or school, applications for TDPT may be submitted by person in charge of activities with known by the Rector/Director/Principal concerned.

Business Certification, Certification of Competence and Halal Certification

Every tourism entrepreneur who has obtained TDUP is required to conduct business certification and certification of competence through certification body in accordance with the provisions of rules and regulation. Both certifications shall be made within 6 (six) months after TDUP is issued. In addition to the business certification and certification of competence, any particular tourism entrepreneur may apply for halal certification in accordance with the provisions of rules and regulation.

Rights and obligations

Every Tourism Entrepreneur is entitled to:

  1. obtain equal opportunities in the field of tourism;
  2. forming and becoming a member of the tourism association;
  3. obtain legal protection in the endeavor; and
  4. obtain facilities in accordance with the provisions of rules and regulation.

Every Tourism Entrepreneur is obliged to:

  1. maintaining and respect the religious, cultural, and living norms of local communities;
  2. providing accurate and responsible information;
  3. providing non-discriminatory services;
  4. providing comfort, friendliness, security and safety of travelers;
  5. provide insurance protection to tourists against high-risk activities that are accountable;
  6. develop partnerships with local micro, small and local businesses that are mutually reinforcing, strengthening and beneficial;
  7. prioritizing the use of local community products, domestic products, and providing opportunities to local workers;
  8. improve the competence of workers through training and education;
  9. going routine certification in compliance with business standards and competency standards;
  10. play an active role in efforts to develop infrastructure and community empowerment program;
  11. participate to prevent all forms of actions violating decency and activities that violate the law at the environment in the place of business;
  12. maintaining a healthy, clean and beautiful environment;
  13. maintaining the preservation of the natural and cultural environment of the region;
  14. maintaining the image of the state and nation of Indonesia through responsible tourism business activities;
  15. to apply business and competency standards in accordance with the provisions of rules and regulations;
  16. providing annually report to the Regional Government;
  17. to meet the requirements of hiring foreign workers;
  18. specifically for entrepreneurial nightclub, they should take precautions against underage visitors entering his/her place of business;
  19. prevent detention under 21 (twenty one) years of buying and consuming alcoholic beverages at the environment in the place of business;
  20. supervise and report on the occurrence of transactions and or the use/consumption of narcotics and other psychotropic substances in the place of business; and
  21. supervise and report in case of gambling activities at the environment in the place of business.

Corporate Social and Environmental Responsibility ("TSLDU")

Every Tourism Entrepreneur who conducts tourism business must implement TSLDU which covers, among others:

  1. education guiding;
  2. cultural and social guiding;
  3. economy guiding;
  4. physical environment guiding;
  5. disaster mitigation;
  6. prevention of the distribution, sale and use of narcotics and/or other psychotropic substances; prevention of immorality and/or prostitution; and
  7. preventing gambling activities.

Other TSLDU are implemented in accordance with the provisions of rules and regulations. In the implementation of TSLDU specifically for every Tourism Entrepreneur who conducts business of night entertainment and karaoke type are required to prevent the distribution, sale and use of narcotics and/or other psychotropic substances. This prevention obligation for every tourism entrepreneur who conducts business of night entertainment and karaoke is conducted in the form of internal monitoring to visitors/guests and/or employees.

Business Activity Report

Every tourism entrepreneur is obliged to submit Tourism Business Activity Report to Head of Dinas every 6 (once every six months). The Tourism Activity Business Report includes of:

  1. business profile;
  2. conduct of business activities.

Head of Office verifies the submitted Tourism Business Activity Report. Dinas grants the Tourism Business Activity Report which has been in accordance with the provisions of rules and regulations. Against tourism businesses which improperly Report the Business Activity Reports are incorrect and/or inappropriate, will be subject to sanctions in accordance with the provisions of rules and regulations.

Local tax

Every tourism business which is subjected to tax object, they shall be imposed with Local Tax in accordance with the provisions of rules and regulations. The tourism entrepreneur shall register his/her business to the Regional Device responsible in the field of Local Taxes to obtain Local Tax Payer ID Number. The Tourism Entrepreneur shall be obligated to pay the Regional Tax obligation in accordance with the provisions of rules and regulations.

Administrative Sanctions

Any tourism entrepreneur who fails to comply with the provisions as referred to in Article 37 paragraph (1), Article 38 paragraph (2), Article 39, Article 43 and Article 46 paragraph (1) shall be subjected to the administrative sanction, namely in form of:

  1. first written warning;
  2. second written warning;
  3. third written warning;
  4. temporary discharge of tourism business activities; and
  5. Revocation of TDUP accompanied by the closure of tourism business activities.

Administrative Sanctions against Illicit Narcotics, Prostitution and Gambling

  1. Any entrepreneur and/or management of a tourism company who is proven that he does not implement the obligations as referred to in Article 38 paragraph (2) letter t based on the findings in the field, information derived from mass media and/or public complaints by committing the circulation, and the use of narcotics and/or other psychotropic substances at the location where tourism business in 1 (one) management, TDUP shall be revoked directly without the first written warning sanction, second written warning, third written warning and suspension of business activity. For the tourism entrepreneurs who are subjected to sanction of TDUP revocation for violation of circulation, the sale and use of narcotics and other psychotropic substances are prohibited to establish a similar type of tourism business.
  2. Any entrepreneur and/or management of a tourism company who is proven for did not implement the obligations as referred to in Article 38 paragraph (2) letter k based on the findings in the field, information derived from mass media and/or public complaints by presenting and/or trafficking human so that the occurrence of immorality and/or prostitution in the location of tourism business in 1 (one) management, TDUP shall be revoked directly without going through the first written warning sanction, second written warning, third written warning and temporary suspension of business activity. For the tourism entrepreneurs who are subjected to sanction of TDUP revocation for violation of presenting and/or trading human beings so that the occurrence of immorality and/or prostitution is prohibited to establish similar type of such entertainment tourism business.
  3. Any entrepreneur and/or management of a tourism company who is proven for did not implement the obligations referred to in Article 38 paragraph (2) letter u based on the findings in the field, information derived from mass media and/or public complaints by omitting the occurrence of gambling activities in the location of tourism business in 1 (one) management, TDUP shall be revoked directly without passing the first written warning sanction, second written warning, third written warning and temporary suspension of business activity. For the tourism entrepreneurs who are subject to sanction of TDUP revocation for violation of the occurrence of gambling activities is prohibited to establish a similar type of tourism business.
  4. For the purpose of inquiries and investigation conducted by Civil State Investigator and/or Police, hence for the tourism business which stopped its activity is closing.

Transitional Provisions

At the time of this Governor Regulation comes into force:

  1. her TDUP registration is abolished;
  2. the temporary register of tourism business is abolished;
  3. TDUP nomenclature of live music type is changed to TDUP type of pub;
  4. TDUP nomenclature of the type of residential tour is changed to TDUP type of service apartment; and
  5. For whom already possessed TDUP by the Tourism and/or Management Entrepreneur prior to the enactment of this Governor Regulation, an adjustment made by the Head of PTSP Daerah in accordance with the provisions of this Pergub DKI Jakarta No. 18/2008.

Muhamad Syaiful Gufron

 

 

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