Jakarta, InfoPublik - The Indonesian Hotel and Restaurant Association’s (PHRI) data showed that about 2,300 star hotels—all 1 to 5 star—in the country had about 290,000 rooms.

In addition, Indonesia Central Statistic Agency (BPS) revealed that more than 16,000 non-star hotels across the archipelago had about 285,000 rooms. It is the highest figure in the South-East Asia region.

“In term of room, Indonesia has the highest number in South-East Asia region. We are at the top of the table. The number does not include shared economy rooms,” said PHRI chairperson Hariyadi Sukamdani in a press release received by InfoPublik in Jakarta, Tuesday (14/11).

However, he said, the hotel owners and operators ought to cater the demands from online travel agencies (OTA) who asked for higher commission than the conventional agencies.  “The commission is quite high, around 15-30 percent,” he said.

Besides that, he added, there is a taxation issue collection on foreign OTA especially on income taxes (PPh, Article 21).

“Online travel agency issue is related to taxation. It is being processed at the Directorate General of Taxation. They [DG of Taxation] want the hotel to pay it. I think all hotels will give strong reaction because the cost will be high. Foreign OTAs demand commission at about 15-30 percent. So, think about it,” he said. 

He added PHRI currently asked DG of Taxation to urge the establishment of foreign OTA’s business entity in Indonesian territory.