logo
Prabowo's efficiency drive takes toll on Jakarta starred hotels

Prabowo's efficiency drive takes toll on Jakarta starred hotels

Nikkei Asia3 days ago
Five-star hotels in central Jakarta: Civil servants are discouraged from holding meetings and seminars at hotels, hitting their occupancy rates and revenues. (Photo by Ken Kobayashi)
JOSEPH RACHMAN
JAKARTA -- Hotels in the Indonesian capital are taking a hit from President Prabowo Subianto's efficiency drive, losing a big chunk of their regular customers as civil servants are denied one of their job perks: free hotel stays.
Jakarta hotels have long relied not on leisure tourism, but on meetings, incentives, conferences and events, known in the industry as MICE. Among their key customers are civil servants from ministries and other state institutions, who for many years have held events at hotels.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Indonesia Offers to Purchase $34 Billion in US Goods Ahead of Tariff Deadline
Indonesia Offers to Purchase $34 Billion in US Goods Ahead of Tariff Deadline

The Diplomat

timea day ago

  • The Diplomat

Indonesia Offers to Purchase $34 Billion in US Goods Ahead of Tariff Deadline

It remains to be seen whether the agreement, set to be signed next week, will secure a significant reduction in the 32 percent 'reciprocal' tariff. Indonesia's government will next week sign a multibillion-dollar agreement to boost purchases from the United States in a bid to strike a trade agreement with Washington ahead of its tariff deadline. Speaking to journalists yesterday, Airlangga Hartato, the coordinating minister for economic affairs, said that the memorandum of understanding will deploy $34 billion 'for new Indonesian investments and purchases in the United States,' Reuters reported. He said that the agreement will be signed on July 7, two days before the Trump administration's sweeping 'reciprocal tariffs' are due to come into effect. According to the Jakarta Globe, the deal includes 'significant purchases of energy and agricultural commodities, as well as investment plans involving Indonesia's sovereign wealth fund, Danantara.' Airlangga told reporters that the value of the energy purchases could reach as high as $15.5 billion, 'This shows that government, regulators, state-owned enterprises and the private sector are together in responding to the imposition of U.S. reciprocal tariffs,' he added. Airlangga said that the aim of the deal is to help address the U.S. trade deficit with Indonesia, which currently stands at around $19 billion, up from $17.9 billion last year. The trade deficit provided the mathematical basis for the calculation of the 32 percent tariff that President Donald Trump imposed on Indonesia during his 'liberation day' tariff announcement on April 2. Indonesia is hoping that the multibillion-dollar pledge will lead the U.S. to reduce, if not eliminate, the tariff. 'We're offering to purchase goods worth more than what the U.S. trade deficit is – $34 billion in total, compared to the $19 billion deficit,' Airlangga said. Reuters also reported that the Indonesian flag carrier Garuda Indonesia is in talks to buy up to 75 jets from Boeing, possibly including 737 Max 8 and 787 jets. The firm's chief executive Wamildan Tsani made the announcement after a meeting with Airlangga, but according to Reuters, it 'was unclear whether Garuda's discussion with Boeing is part of the tariff negotiations,' nor whether this deal is included within the $34 billion. Earlier this week, Airlangga said that Jakarta has invited U.S. firms to invest in its critical minerals sector, in collaboration with the Danantara fund. He added yesterday that the two countries are 'looking to expand' their collaboration in the mining sector, although he declined to discuss specific project details. As the clock runs down to July 9, trade partners of the U.S. – including many in Southeast Asia – are hurriedly trying to broker deals to avoid the full impact of the 'reciprocal' tariffs, or secure a further extension of the 90-day postponement. The White House has suggested that those doing so in 'good faith' could receive an additional delay on tariffs. Most Southeast Asian nations were hit with a hefty tariff in Trump's 'liberation day' tariff announcement on April 2. Cambodia topped the list with a tariff of 49 percent, followed by Laos (48 percent), Vietnam (46 percent), Myanmar (44 percent), Thailand (36 percent), Indonesia (32 percent), Brunei (24 percent), Malaysia (24 percent), and the Philippines (17 percent). Singapore and Timor-Leste, the only two Southeast Asian nations with which the U.S. has a trade surplus, were hit with just the 10 percent worldwide baseline tariff. Vietnam yesterday became the first Southeast Asian nation, and the second in the world after the United Kingdom, to sign a tariff deal with the U.S. ahead of the July 9 deadline. According to announcements by President Trump and the Vietnamese government, the deal involves a reduction of its 46 percent reciprocal tariff to 20 percent, while Vietnam has agreed to lower import barriers to U.S. exports to zero. The U.S. will also maintain a 40 percent tariff on goods from China transhipped via Vietnam to avoid other tariffs – although how this status will be determined is unclear, and could come back to sting Hanoi. Since April, Indonesia has made a number of offers to the U.S. in tariff negotiations. Last week, Airlangga said that the government would ease import regulations on 10 groups of commodities within two months, including fertilizers, footwear, and bicycles, while excluding industrial raw materials like plastic and chemical products from the import restriction list. Jakarta has also proposed relaxing some of its local content requirements, which set quotas for the use of locally produced content. In particular, the government has proposed reducing the requirement on government procurements that will permit any state ministry and institution to buy products with 25 percent locally produced content, down from the current minimum of 40 percent. Both of these issues were among the non-tariff barriers identified by the U.S. Trade Representative in a report published in late March as contributors to the country's large trade surplus with the U.S.

Indonesia, Saudi Arabia unveil $27bn plan to boost ties 'in all fields'
Indonesia, Saudi Arabia unveil $27bn plan to boost ties 'in all fields'

Nikkei Asia

time2 days ago

  • Nikkei Asia

Indonesia, Saudi Arabia unveil $27bn plan to boost ties 'in all fields'

Indonesian President Prabowo Subianto, left, meets Saudi Crown Prince Mohammed bin Salman at Al Salam Palace in Jeddah on July 2. (Indonesia's presidential office) NANA SHIBATA JAKARTA -- Indonesia and Saudi Arabia on Thursday announced $27 billion worth of deals and preliminary agreements covering sectors including clean energy and petrochemicals, as Indonesian President Prabowo Subianto stopped in the Saudi city of Jeddah on his way to Brazil. The announcement was made after Prabowo's meeting with Saudi Crown Prince Mohammed bin Salman at Al-Salam Palace on Wednesday, during which they agreed to explore partnerships in a broad range of sectors including crude oil supply, mining and minerals processing, green technologies, agriculture and pharmaceuticals.

Indonesia, Saudi Arabia unveil $27 bn plan to boost ties 'in all fields'
Indonesia, Saudi Arabia unveil $27 bn plan to boost ties 'in all fields'

Nikkei Asia

time2 days ago

  • Nikkei Asia

Indonesia, Saudi Arabia unveil $27 bn plan to boost ties 'in all fields'

Indonesian President Prabowo Subianto, left, meets Saudi Crown Prince Mohammed bin Salman at Al Salam Palace in Jeddah on July 2. (Indonesia's presidential office) NANA SHIBATA JAKARTA -- Indonesia and Saudi Arabia on Thursday announced $27 billion worth of deals and preliminary agreements covering sectors including clean energy and petrochemicals, as Indonesian President Prabowo Subianto stopped in the Saudi city of Jeddah on his way to Brazil. The announcement was made after Prabowo's meeting with Saudi Crown Prince Mohammed bin Salman at Al-Salam Palace on Wednesday, during which they agreed to explore partnerships in a broad range of sectors including crude oil supply, mining and minerals processing, green technologies, agriculture and pharmaceuticals.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store