In order to implement the terms of Government Regulation Number 52 of 2012 on Business Certification in Tourism Sector (“GR 52/2012”), the Minister of Tourism setsthe Minister of Tourism and Creative Economic Regulation Number 1 of 2014 on Implementation of Certification of Tourism Business (“Minister Regulation 1/2014”).Under Article 1 number 2 of Minister Regulation 1/2014, Certification of Tourism Business is a process of giving the certificate for the tourism business to support the increase of quality of tourism products, services and management of tourism enterprises though audits.Minister Regulation 1/2014 regulates the business certification institute, procedure of certification, supervision of tourism business certification, and the administrative sanction by the minister.
Business Certification Institute
Business Certification Institute on Tourism Sector (“Business Certification Institute”) is an independent institute authorized to certify the business on tourism sector based on the laws and regulations in Indonesia. Based on Article 14 paragraph (1) of Law Number 10 of 2009 on Tourism (“Tourism Law”), comprises:
- tourist attraction;
- tourism region;
- tourist transport services;
- travel services;
- food and beverage services;
- provision of accommodation;
- organization of entertainment and leisure activities;
- organizing meeting, incentive travel, conferences, and exhibitions;
- tourism information services;
- tourism consulting services; tour guide services;
- water tourism;
Business Certification Institute is established subject tothe following requirements:
- business entityand legal entityin Indonesia;
- has an auditor;
- has a working devices.
The following are the tasks of Business Certification Institute:
- maintain the performance of auditor;
- develop the schema of certification.
The authorities of Business Certification Institute are:
- to set the audit fee;
- issues the Certificate of Tourism Business; and
- revoke the Certificate of Tourism Business.
The Business Certification Institute must submit the report periodically every 6 (six) month to the Minister by delivering a copy to the Governor, Regent or Mayor. The Business Certificate Institute may establish branches subject to the requirements of establishment of the Business Certificate Institute.
Under the Minister Regulation 1/2013,Authorization Certification Commission for Tourism Business (“Authorization Commission”) is formed, having the following tasks and authorities:
- checking, verifyingand evaluatingthe completeness of the Application of Establishment of Business Certification Institute Document, that consists of:
1) copy of Deed of Establishment of the enterprises engaged in the certification;
2) work plan of Business Certification Institute minimum for the next 3 (three) years;
3) management budget plan of Business Certification Institute minimum for thenext 3 (three) years.
4) has working devices, such as:
a) materials of tourism business audit
b) the guidelineof implementation of tourism business audit; and
c) quality guideline.
5) Manager’scurriculum vitaeequipped with photo;
6) Auditor’s curriculum vitae equipped with photo
7) the copy of Identity Card (KTP) of the auditor.
- givingrecommendation of appointment and determination to the Minister. Based on the recommendation, the Minister appoints and determines the Business Certification Institute with the Minister Decision and it will valid be for 4 (four) years as long as the Business Certification Institute still perform their business.
- monitoring the implementation of Certification of Tourism Business and supervising the performance of Business Certification Institute;
- giving recommendation to the Minister for imposing administrative sanction of the violation carried out by the Business Certification Business; and
- giving recommendation of the revocation of determination and appointment of Business Certification Institute to the Minister.
Authorization Commissionconsists of elements from:
- the relevant government agencies;
- tourism association;
- academicians; and
- other necessary elements.
Procedure of Certification
The procedure of tourism business certification is performed with the following steps:
- the entrepreneur submits application of certification registrationto the Business Certification Institute with a copy to the Authorization Commission. The Business Certification Institute informs to the Governor through technical agencies which has a task and function in tourism sector.
- Business Certification Institute assigns the auditor team that has a Certification of Auditor with audit competence according to the tourism business that will be audited, to audit the applicant;
- the Auditor team reports the audit result to the Business Certification Institute that has assigned the auditor;
- the Business Certification Institute reviews the audit resultreported by the Auditor team and decides the certification as well asissues the Certificate of Tourism Business.
With regards to the implementation of Tourism Business Certification,the Business Certification Institute has to apply the following principles:
- confidential; and
- swift-responsiveness to the complaint.
The administrative sanction may be in the form of:
- written warning;
- restrictions on business activities; and
- operation freeze.
There are 2 provisions regarding administrative sanction to the tourism entrepreneur, they are:
- the administrative sanction may be imposed to the tourism entrepreneur if they do not comply the following provisions:
1. The tourism entrepreneur shall register their business to the government or local government.
2. Every tourism entrepreneur shall:
- maintain and respect religious norms, customs, culture, and values in the local community;
- provide correct information;
- provide non discriminative services;
- provide comfort hospitality, security protection, and the safety of tourists.
- provideinsurance protection to the tourism business in high risk;
- develop partnership with the local business of micro, small, and cooperatives that is complementary;
- prioritize the utilization of local product, domestic product, and providing opportunity to the local labor;
- increase the competency of labor by training and educating;
- actively participate in order to develop the infrastructure and program of community empowerment;
- prevent any action that violates decency and unlawful act in business’s premise;
- maintaina healthy environment;
- preserve the natural and cultural environment;
- maintain the image of the country and people of Indonesia through the responsible tourism activities; and
- applyy business standard and competency standard in accordance with the laws and regulations.
2. Administrative sanction may be imposed to the tourism entrepreneurs, if they do not comply the following provisions:
- tourism entrepreneur shall employ the certified labor, including the foreign labor, in the field of tourism in accordance with the laws and regulations;
- tourism entrepreneur shall have a tourism business certificate in accordance with the laws and regulations.