Key insights and market outlook
The draft regulation for Smoke-Free Zones (KTR) in Jakarta is facing opposition from various business sectors, including hotels, restaurants, and market traders. The proposed rules are considered potentially harmful to economic recovery and could reduce business revenue while consumer spending remains subdued. The Jakarta Hotel and Restaurant Association (PHRI) chairman highlighted that the industry is still under significant pressure with occupancy rates below pre-pandemic levels and rising operational costs.
The proposed Smoke-Free Zone (KTR) regulation in Jakarta is encountering significant resistance from various business sectors. The Jakarta Hotel and Restaurant Association (PHRI) has expressed strong concerns about the potential negative impact on the industry's recovery. According to Sutrisno Iwantono, chairman of PHRI Jakarta, the hotel and restaurant industry remains under considerable strain with occupancy rates still below pre-pandemic levels while operational costs continue to rise.
The hotel industry in Jakarta is particularly concerned as they struggle to regain pre-pandemic occupancy levels. With rising operational costs and subdued consumer spending, business owners believe additional regulatory measures could exacerbate their challenges. The PHRI chairman emphasized that the industry is still in a vulnerable state and needs supportive measures rather than additional restrictions.
Proposed Smoke-Free Zone Regulation
Business Association Opposition