JAKARTA - The Indonesian House of Representatives asked the government to act quickly to find solutions and intervene to revive the hotel and restaurant industry sector in Indonesia which is experiencing dusk. This is because the decline in occupancy rates and hotel and restaurant visitors has triggered the threat of layoffs (PHK) by up to 70 percent.
"We have received information about the potential for mass layoffs in the hotel and restaurant sectors. Commission VII of the DPR has encouraged the government to immediately intervene and find concrete solutions to overcome this problem," said a member of Commission VII DPR RI, Siti Mukaromah, Monday, June 2.
"The layoffs wave has hit various other industrial sectors, such as manufacturing. We hope that the same thing does not happen and worsens the condition of business actors and workers in the hotel and restaurant industry," continued the woman who is familiarly called Erma.
Erma said many factors triggered a decline in the hotel and restaurant business in Indonesia. Starting from an uncertain global economic situation, a decrease in people's purchasing power, high inflation, to technological disruption that affects people's spending patterns.
Data from the Central Statistics Agency (BPS) shows that foreign tourist visits to Jakarta in the 2019-2023 period are still very low, only 1.98 percent.
"In addition, the decrease in hotel occupancy rates is also influenced by various factors, including the efficiency carried out by consumers, both from the government and private sectors, as well as declining economic conditions and people's purchasing power," he added.
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The PKB legislator from the Central Java VIII electoral district said that currently Commission VII of the DPR is discussing the Tourism Bill (RUU) with the aim of revitalizing the tourism ecosystem as a whole. According to Erma, this is important because the tourism sector has great potential in driving the national economy.
"Tourism is not just a destination, but also involves various related industries, ranging from accommodation such as hotels and lodging, restaurants, transportation, to shopping tourism involving Micro, Small and Medium Enterprises (MSMEs) and the surrounding community," he explained.
To prevent mass layoffs in the hotel and restaurant industry, Erma proposed several strategic steps. In terms of policy, he emphasized the importance of commitment to accelerate the discussion of the Tourism Bill in order to create strong regulations to protect and connect all elements in the tourism ecosystem.
"In addition, comprehensive policies are needed to overcome the impact of layoffs. For example, through programs or cross-ministerial policies that make it easier for people to become entrepreneurs," he concluded.
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