Key insights and market outlook
The Jakarta government's planned Smoke-Free Zone (KTR) regulation has raised concerns among tourism businesses. PHRI Jakarta supports health protection but requests balanced implementation that doesn't harm the business climate. Key concessions include removal of sales and display bans and exemptions for hotels and restaurants. The sector is labor-intensive and strategic in Jakarta's economy.
The planned implementation of Jakarta's Smoke-Free Zone (KTR) regulation has sparked concerns among tourism industry stakeholders. The Jakarta chapter of the Indonesian Hotel and Restaurant Association (PHRI Jakarta) has expressed support for the health protection aspects of the regulation while emphasizing the need for a balanced approach that considers the potential impact on the business climate.
Following facilitation by the Ministry of Home Affairs, several key concessions were made to address business concerns. These include the removal of bans on cigarette sales and displays, as well as exemptions for hotels and restaurants from the expanded KTR regulations. Sutrisno Iwantono, Chair of PHRI Jakarta, stressed that these concessions must be maintained and not tightened further during the regulation's implementation.
The hotel and restaurant sector is considered strategic and labor-intensive in Jakarta's economy. PHRI Jakarta emphasizes that any regulation affecting this sector must be carefully designed to avoid negative impacts on the business climate and employment. The association has welcomed the Ministry's efforts to accommodate business aspirations while maintaining public health objectives.
The challenge lies in implementing the KTR regulation effectively while preserving the region's business attractiveness. PHRI Jakarta's engagement highlights the importance of stakeholder collaboration in shaping regulations that balance public health goals with economic realities.
KTR Regulation Development
Business Community Response
Regulatory Concessions