Indonesia's NIB-KBLI Rule for Foreign Travel Agents Called 'Policy Innovation'

A public policy expert from Trisakti University, Trubus Rahadiansyah, considers the mandatory requirement for foreign online travel agents (OTAs) to obtain a Business Identification Number (NIB) and Indonesian Standard Industrial Classification (KBLI) as a significant policy innovation. He emphasizes that this step is crucial for ensuring that global companies adhere to the regulations in force within Indonesia.

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The obligation is an important step so that these foreign companies respect and comply with the rules that apply in Indonesia.

Rahadiansyah stated that this obligation is important for making foreign companies respect and comply with Indonesian rules. He views the policy as an innovative breakthrough, noting that many foreign OTAs have profited substantially from the Indonesian market without fully meeting their legal business obligations. This disparity has led to a sense of unfairness among domestic businesses, who feel they are not on a level playing field with their international counterparts.

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If this is important in the context of making foreign OTAs willing to respect or comply with the rules that apply in Indonesia, I think this policy is an innovation of policy.

From an equity perspective, Rahadiansyah highlighted the competitive advantages foreign OTAs sometimes enjoy, which can disadvantage local players. He believes that if implemented effectively, this regulation could encourage foreign OTAs to expand their operations by opening branch offices across Indonesia, thereby creating new employment opportunities. The expert also acknowledged that some foreign OTAs may still be adapting to these new regulations, suggesting that the government should maintain a conducive business climate through moderate and persuasive approaches to build trust and ensure compliance.

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Domestic OTAs feel there is a social gap.