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EASE OF PERMIT POTENTIAL TO CREATE RI’S ECONOMIC OF UP TO IDR170 TRILLION

THE EASE of event permits for organizing music concerts, arts, culture, sports, and other Indonesian (RI) creative economic activities has the potential to create economic movements of up to IDR170 trillion and also catalyze the revival of the Event and MICE industry.

According to the Minister of Tourism and Creative Economy, Sandiaga Uno, said during the Weekly Briefing at the Sapta Pesona Building, Jakarta, Monday, (02/27) said, that President Joko Widodo wants digitalization that integrates all permits that have been done manually with a target for principle permits so that the licensing process becomes easier.

“The target from the President is that the maximum permit is issued 45 days before the event takes place with the target of a large event that the principal permit can be given 6 months in advance, and for technical permits or more detailed permits 3 months in advance,” he stated.

He explained, while the final permit was the latest 45 days before the event. Of course, this will be under the command of the Minister of Communication and Tourism, we will integrate all permits from both the central and local government levels and across ministries/institutions, including from the National Police, this is a standardized and digitized event licensing flow.

“This will facilitate the 3,000 events that will be held in 2023, so that they can have a positive impact on the national economy. And this will have the potential to create an economic movement of around IDR170 trillion,” Sandiaga said.

The results of the IVENDO (Indonesia Event Industry Council) survey stated that after the COVID-19 pandemic flattened, event activities carried out by 130 IVENDO members contributed an economic value of IDR423 billion. The economic value of this event activity is still relatively small compared to before the pandemic which reached IDR164 trillion per year.

Furthermore, Sandiaga said that Indonesia is committed to continuing to develop the Event and Meeting, Incentive, Convention, and Exhibition (MICE) sectors as one of the pillars of the national economy. 

Among them is by preparing easy licensing (deregulation) in obtaining permits for organizing Event and MICE activities. This is because events and MICE are able to create economic activities, create investment and employment.

“MICE is like we started at the ASEAN Tourism Forum (ATF) 2023, it turns out that we are able to organize it successfully,” said the Menparekraf. Likewise with several sports tourism events such as MotoGP and F1 powerboat.

Sandiaga added that Indonesia must be smart in utilizing the opportunities available to develop MICE, for example utilizing the reopening of the Chinese border. China’s border easing policy provides an opportunity to increase the number of outbound travelers from China by 2023.

“The Chinese market we are targeting is 255,300 people at the upper limit target, and the MICE sector accounts for about 25 percent of the target. We will work with relevant stakeholders to ensure the Chinese market, where we target the arrival of business travelers from the 5 largest industrial cities namely Beijing, Shanghai, Kuan Chun, Shenzhen, and Hong Kong,” said the Minister.

The Ministry of Tourism will also work with airlines to increase the number of flights between Indonesia and China both on a regular basis and charter flights from cities in China that are not yet served by regular flights.

“And for the Chinese MICE sector, of course, we need appropriate strategies that we will apply, and we can now start with several charter flights, but in the future, it will be handled by regular flights,” Sandiaga concluded. [traveltext.id]