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Operating Without A Permanent Business Entity, PHRI Urges Government To Block Foreign OTA

Lifestyle 19 Juni 2025, 11:55 Illustration of travel (Unsplash) The gathering of Indonesian Hotels and Restaurants (PHRI) urges the government to block foreign travel service agents (Online Travel Agents/OTA) who do not have a business license and do not form permanent business entities in Indonesia.In a press statement in Jakarta, Wednesday, PHRI Secretary General Maulana Yusran said that the actions of foreign OTAs using digital platforms to sell services without having a Trade Business License Through the Electronic System (SIUPMSE) are detrimental to the domestic tourism industry.This action violates the provisions in Law Number 36 of 2008 concerning Income Taxes, which requires foreign companies operating for more than 183 days in Indonesia to establish a permanent business entity as the basis for legality and tax obligations."It's time for the state to act decisively, including blocking illegal foreign OTA if they continue to ignore regulations," said Yusran."This is not only a matter of legality, but a matter of economic sovereignty. The state has lost the potential for taxes, local workers have lost their job opportunities, and domestic business actors have become victims of unhealthy competition practices," he explained.According to Yusran, foreign OTA can be free to do activities because supervision of the practice of selling illegal accommodation on digital platforms and social media is still weak.Therefore, Yusran suggested that the Ministry of Tourism not only focus on tourism promotion and investment, but also fix the legal foundations and supervision of tourism business operations."If it continues, our people will be harmed. There are fewer jobs, while foreign companies continue to make profits without contribution," he said.According to him, Regulation of the Minister of Trade Number 31 of 2023 concerning Business Licensing, Advertising, Guidance, and Supervision of Business Actors in Trade Through Electronic Systems also needs to be revised in order to include digital service rules.The Director General of Consumer Protection and Trade Order of the Ministry of Trade, Moga Simatupang, said that the government has required all digital business actors to apply for permits for Electronic System Operators (PSE) so that their activities are registered and can be monitored."Online Single Submission (OSS) has made it easier to obtain business licensing," he said. The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)