The acceleration of infrastructure development in Indonesia induces the growth of tourism industry; particularly in previously less accessible area. As the result, the demand for accomodation in that area will rise; which opens a chance for investors to invest in hotel industry. However, when it comes to investing a substantial amount of money; location and access to tourism attraction are not the only things to be concerned about; investors also need to consider legal matters in relation to such investment.
In Indonesia, hotel is defined as the daily provision of accommodation business in the form of rooms in 1 (one) or more buildings, including guest house, lodge, boarding house, that is equipped with food and beverage services, entertainment activities, and/or other facilities. There are various legal requirements that need to be complied with, if investors would like to build a hotel in Indonesia. As hotel is considered to be part of tourism businesses, it is mandatory for hotel owner to obtain Tourism Business Registration Note or Tanda Daftar Usaha Pariwisata (TDUP) and pay for regional retribution which varies from one region to another.
When submitting the application, applicant needs to have certain documents in their possession. Such documents are among other, permits, NPWP and deed of establishments. Permits; such as building permit and disturbance permit need to be obtained prior to submitting the application for TDUP. Furthermore, if a hotel owner wishes to sell alcoholic beverages, he must obtain Business Permit for Alcoholic Beverages or Surat Izin Usaha Pariwisata Minuman Beralkohol (SIUP MB). With the extensive list of documents that needs to be obtained (prior to and at the time of application) and legal requisites to be met, it is important to make sure everything is properly done to avoid penalty that will be detrimental for the stakeholders.
Penalty in hotel industry can be in the form of revocation of permit. This should not happen if the hotel owner has taken care of everything relating to permits. Therefore, an adequate legal advice from a competent consultant is necessary to ensure that legal obligations and requirements have been complied with. We have the experience in handling the application of TDUP and legal matters in hotel insdustry. Thus, should you have any query concerning TDUP and needs to consult regarding such matter, AP Law Office is prepared to provide you with information that you need.
Article Source:
Ministry of Tourism Regulation No. 18 year 2016 Article 1 paragraph 28.