The Perspective of Liberalization of Services in the Law Number 10 Year 2009 Regarding Tourism.
The Perspective of Liberalization of Services
in the Law Number 10 Year 2009 Regarding
Tourism
I Gusti Ngurah Parikesit Widiatedja,S.H.,M.Hum.,LLM.
Paper Presented in
International Seminar
“Economic Approach to Law in Tourism Industry”
Jointly organized by
Master Program in Law Udayana University, Faculty of Law Udayana
University and Metro Faculty of Law Maastricht University, The
Netherlands In Cooperation with Master Program in Notary Udayana
University and Doctoral Program in Law Udayana University
Denpasar, 28 August 2015
1
2
TABLE OF CONTENT
A. BACKGROUND
B. SOME HIGHLIGHTS IN RELATED WITH LIBERALIZATION OF SERVICES
C. CONCLUSION
D. REFERENCES
3
The Perspective of Liberalization of Services
in the Law Number 10 Year 2009 Regarding Tourism
IGN Parikesit Widiatedja,S.H.,M.Hum.,LLM.1
Faculty of Law Udayana University
a. BACKGROUND
In the third milenium, a challenge ahead is obviously convoluted which is being discerned
by liberalization in many fields. It had been epitomized through comprehensive negotiations of
trade in Uruguay Round when 123 nations agreed to establish the World Trade Organization
(WTO) in Marakesh, Marocco. That crucial moment could be a stepping stone of proliferation in
liberalization because of their substantial coverages encompassing investment, intelectual
property rights and services were an integral part of tradable activities.
Despite being debatable, all participants commited to establish a multilateral framework of
principles and rules for trade in services that were well-approved as General Agreement on Trade
in Services (GATS). They had hoped if GATS with entered into force in january 1995, could
remove any restrictions and internal governmental regulations in the area of services whose
impact eventually emerged trade harrasment. It was also closely related with the potential
contribution of services for the world economy which are going to be the largest and fastest
growing sector. In 1999, the value of cross-border trade in services amounted to US$ 1350 billion,
or about 20% of total trade. This understates the true size of international trade in services much of
which takes place through establishment in the export market, and was not recorded in balance of
payments statistics. Since the past two decades, trade in services has been growing faster than
merchandise trade2.
Indonesia binded itself through promulgating law number 7 year 1994 regarding The
Ratification of Agreement of Establishing the World Trade Organization (WTO) including GATS.
The increasing performance of development was an essential consideration to ratify its agreement
that was progressively allowed the operation of foreign services provider. Indonesia’s government
though over that GATS would be a conduit of its goal to be just and properous of our community
which is clearly mentioned in the preamble of the Constitution of the Republic Indonesia of 1945.
As a sector that has been legally binded in GATS, tourism is moving to be one of the most
dynamic sector of economic activity, generating a wide range of benefits including foreign
exchange earning and a growing contribution to the GDP which in some cases reaches over 10%.
Tourism has been a popular global leisure activity. In 2007, there were over 903 million
international tourists arrival, with a growth of 6.6% as compared to 2006. International tourist
receipts USD 856 billion in 20073.
Based on that figures, it is not coincidence if all countries attempt to lure many tourists as
much as possible that were openly liberalized as impact of GATS. Myriad special programs of
tourism with followed by creative and innovative promotions have been undertaken. They believe
1
Lecturer of Faculty of Law Udayana University
World Trade Organization, 2004. Why Is The Liberalization of Services Important?, GATS:
Fact or Fiction (online), http://www.wto.org/english/traptop_e/gats_factfiction.htm Retrieved on 2009-0529.
3
World
Tourism
Organization,
2007.
http://unwto.org/facts/eng/pdf/barometer/unwto_barom07_2_en.pdf. Retrieved on 2009-05-29
2
4
if tourism that is viewed as the colaboration of amusement, entertainment, enjoyment and
education, will be a robust sector and can be immune from the symptom of economic slowdown
currently.
Desiring to build capacity and mobilize all resources of tourism all at once compete
globally, Indonesia has promulgated the law number 10 year 2009 regarding tourism. As reffered
to its consideration, the development of tourism shall be aimed to encourage equally opportunity
of doing business, gains substantial benefit and faces again challenge of immense change both
locally and nationally as well as globally. The content of this law encompassing the right and
obligation of tourism practitioners, the development of tourism in comprehensively and
sustainably, the coordination of across sector, the establishment of strategic area, the
empowerment of small-medium enterprises, the establishment of tourism promotional board, the
establisment of asociation of tourism, the standarization and competency of tourism employee and
the empowerment of human resources.
This discourse attempts to identify meticulously which content of its law can be clustered
as government’s perspective in responsing liberalization of services. Author think over that it is
worthwhile to analyze and asses the readiness of tourism stakeholders to compete either directly
or indirectly with foreign services provider, that have been rampant in Indonesia after the
enactment of GATS. Desiring to engender a positive outlook of our future, Author expects to
convey clearly information for socializing and disseminating the newest law of tourism in a view
with liberalization of services.
b. SOME HIGHLIGHTS IN RELATED WITH LIBERALIZATION Of SERVICES
1. The stressing point of preservation of nature, culture and human environment
Refering to the consideration of the law of tourism, our natural wealth which are granted
and entrusted by God as well as cultural heritages, have becomed huge capital and resources for
the development of tourism to be just and prosperous of Indonesia’s community. Hence, as an
integral part of our national development, tourism is designed sistemically, well-planned,
integrately, sustainably and responsibly as a means of protecting our religious value, cultural
heritages and the conservation of human environtment.
All those concepts have been elaborated in several articles in law of tourism. Article 4
point e and f, have decided if tourism has a main goal to preserve our natural wealth, human
environment and cultural heritages. As reffered to article 5 point d, The implementation of
tourism principle must not neglect with the preservation of nature and human environment. In
article 6, The Development of tourism must be undertaken based on article 2 through realizing the
action plan of the development of tourism concerning natural and cultural diversity, uniqueness
and characteristic as well as and the fulfillment of human need in tourism activity.
As a concrete measure, government which is clearly mentioned in article 12(1), has finally
decided a strategic area of tourism which becomes particular area with the high level of potential
development and has significantly influenced of tourism activity that underlied by several aspects
comprising tourism and natural resources, potential market, strategic position, protection of certain
location which has a role for maintaining tourism function and its carrying capacity, strategic area
which has a role for protecting cultural assets, the support and readiness of people and the relevant
characteristic of its location.
The stressing point of preservation of natural wealth, cultural heritages as well as human
environment can also be reflected from article 23 (1) which is strictly obliged all governments both
central and regional levels to maintain, improve and preserve our national assets that becomes
national attraction of tourism which have not been explored yet. In financial aspect as reffered to
article 57 untill 59 that becomes collective responsibility of tourism stakeholders, government is
5
also obliged to alocate at least half of their income from tourism activities for the preservation of
natural and cultural needs.
No one can deny if our natural wealth, cultural heritages and human environment are three
inseparable capital that can be regarded as our comparative advantage for competing in
liberalization era. The sucessfully implemented of tourism managerial will depend on our
harmonious and balance principle while gaining benefit from their components. Due to its
priceless and irreversible value, they must be exploited, preserved and passed on with three main
pilars comprising economically viable, lawfully creditable and environmentally sustainable.
The political will of government through its law of tourism to stress our natural wealth,
cultural heritages and human environment all at once in financial obligation to manage them has
been commendable. It must become a starting point to optimally enhance our comparative
advantage. As a reality of contemporer and need to be promptly responded, liberalization of
services requires the high level of management with fully covered by broader paradigm and
concept, transparency administration, financial accountability, and effective supervision in tourism
as well as supported by actively participated of all tourism stakeholders including people and
tourism practitioners. Because of its law, government has formed the main priority of our tourism
concept and it should be easier and well accepted for other relevant stakeholders to uphold it
because they know what should be developed and placed as a primarly priority of doing activities
in tourism.
Nonetheless, we must be aware and alert with the detrimental effects which easily arise
from unbridled and uncontrolled of developing tourism. The exploitation of those components will
be occurred if it is treated without any respect and responsibility and only become commercial
comodities to pursue short-term progress. It can not only be assumed that the more tourists here,
the bigger income will be. That is the main challenge to all stakeholders how to see clearly if all
those components must be administered to maximize the benefit while minimizing the negative
one as well as consider with our future generation needs.
2. The Recognition of Tourism activity as a human right.
Refering the consideration of law of tourism, the freedom to undertake travel and leisure
activity is strictly recognized as a human right. Article 5 point b has expressly stated that the
management of tourism based on a human right recognition, cultural diversity and local wisdom
with followed by article 19 (1) point a that mentioned if every people has a right to fullfil their
needs in tourism activity.
This effort must be applauded as it denotes the government commitment to recognize and
ensure social and economic rights as well as civil and political rights.4 Afterwards, it will
reinvigorate tourism sectors which has ever got ordeal such as catastrophic disaster, horrible
terorism and terrible disease. Eventually, Indonesia’s tourism can be exist even thrive in facing
fierce competition as impact of liberalization of services without neglecting with its goal to reduce
unemployment, alleviate poverty and rectify imbalances in our national development.
However, this concept does leave ample room for interpretation whose its term and
meaning has not really been comprehended well by tourism practitioners. Notwithstanding of its
article, how do we uphold it concept while the awareness, perception and recognition in other
sectors which have been promoted since the last decade, have been relatively low. Furthermore,
government who ought be a role model, has been unable to enforce human rights abuses which
was committed in the past.
3. The actualization of non-dicrimination Principle
Desiring to facilitate the increasing participation of all stakeholders, they have an equal
right of doing tourism activities. Government is also formally obliged to provide condusive
4
Pascal Lamy.2009. Globalization and Trade Opening Can Promote
http://www.wto.org/english/news_e/sppl_e/sppl128_ehtm. Retrieved on 2009-06-04
6
Human
Rights,
climate for business activities such as equal oppurtunities and law certainty. It can be found in
article 23 point b. Meanwhile article 26 point c also oblige that every business practitioners of
tourism must provide services in line with non-dicrimination principle.
Non-discrimination principle must be accorded immediately and unconditionally that
should become a paramount prerequisite in every movement of liberalization in all countries entire
the world. The enforcement of its principle will eliminate differencial treatments in order to protect
certain products both production and distribution as well as consumption levels from person or
legal entities who have intimate relationship with the decision maker which tend to be deceptive
and fraud. Unfair trade and monopoly as impact of their activities are the major argument why all
those thing is very taboo to be undertaken currently.
4. The increasing quality of human resources.
Pursuant to Article 11, government in together with concerned institution must conduct
sustainably research and improvement for tourism in order to support the development of tourism.
Afterwards, article 26 point h emphazis that every business practitioners of tourism are obliged to
strengthen the quality of their employee through education and training skills. Meanwhile,
government as reffered to article 28 point g, has authority to the improvement of human resources
through its policy in tourism. Meanwhile, the sertification and standarization of employee in
tourism can also be categorized as a government measure to increase our quality of human
resources. As referred to article 53, all employees who involve in business activities of tourism
must have the standart of competency through sertification of competency which has been
conducted by the institution of profesional sertification.
Government admitted that one of the main obstacle was the low quality of human
resources. As reffered to the law number 17 year 2007 regarding The National Plan of Long-Term
Development (RPJP), our human development index still 0,697 and placed in 110 out of 177
countries with the purchasing power parity only reach US$3.361. It triggered a low performance
of development as human resources even created the inundation of unemployment here which
fully covered by low-level of skills, poor-concept of management and pragmatism of mindset.
Desiring to embattle all those challenges, the implementation of government measures for
increasing human resources of tourism shall ensure to produce well-qualified both knowledge and
skills and mold their character as a part of human empowerment who are able to partake and
compete mainly with foreign services provider. All those strategies can be conducted either
through formal and informal education. The excellent curricula which becomes a general guidance
in a view with the management of human resources, ought to be a starting point to attain our goal
as a means of building our domestic services capacity and its competitiveness as well as eficiency
in the liberalization of services era.
5. The empowerment of small-medium enterprises
Article 17 clearly mentioned that government in any levels are obliged to improve and
protect small medium enterprises in tourism through a policy in order to reserve business activity
of tourism for small-medium enterprises and cooperation. Beside that, they are also obliged to
facilitate joint partnership beetwen small medium enterprises and cooperation with the giant of
tourism business on a mutually advantageous basis.
The number of small medium enterprises is high in all sectors. Recent data from
Indonesia’s statistics bureau showed that in 2006 they accounted for 99,98 % of all enterprises
and absorbed over 61 milion job or slightly over 60% of total empoyment of
Indonesia.(Indonesia’s Statistics Bureau,2009) That’s why they have cardinal role in the
development of the local economy especially in reducing poverty by creating job opportunities.
Sketchily, empowering them means empowering the public economy, potentially propelling
sustainable growth.
7
In the perspective of the liberalization of services, its reality will invite foreign service
provider in Indonesia which can be categorized as high-scale of business with their sophisticated
technology and infrastructures, unlimited fund, well-prepared skills and well-organized teamwork.
It will not be fair if they can compete unconditionally with small medium enterprises and
cooperation as the biggest portion of our economic posture. In terms of welfare state, It is
reasonable and undeniable if Government must protect them to keep their existency growing. The
development of small-medium sector eventually will be a pathway to progress of a sustainable
economy and also a sense of national pride.
Hence, government measures shall be aimed at assisting and facilitating small-medium
enterprises and cooperation in overcoming their major constraints to grow up emanated from the
low level of technology, shoddy skills of management, traditional concept of marketing,
cumbersome licensing, limited funding, difficulty of acessing credit and high pollution of
environmental performance.
6. The involvement of all stakeholders
Article 9 (4) has clearly mentioned that government must involve and facilitate actively
participated of all stakeholders while formulating an action plan of tourism. Likewise in the
financial aspects as reffered to article 57 which is also mentioned as collective responsible.
Based on its law, Government is cognizant that the development of tourism must involve
broader participation of all stakeholders in which their policies are being executed. As a part of
good governance principle, this measures also crystallise their aspirations to be strong and
cohesive movement of managing tourism. It will be a positive and constructive balancing power
to see more independently and clearly how to navigate tourism activities based on sustainable
development principle. A lot of information can be absorbed from them like what are the benefits?
what are the obstacles? what are they going to do? And what do they expect in the future? In the
other word, the involvement of all stakeholders will engender aptly policy all at once create a huge
opportunity to boost the carrying capacity of tourism.
7. The establishment of tourism promotional board
As reffered to article 36, it is clearly mentioned that government is obliged to facilitate the
establishment of tourism promotional board which is located on the capital of Indonesia. This
board is private institution which has independent position. Afterwards, article 41 has elaborated
the task of tourism promotional board encompassing
a. to increase Indonesia’s tourism image,
b. to increase the number of foreign tourist arrival and foreign exchange income,
c. to incrase the number of domestic tourist arrival and its educational process,
d. to collect fund apart from national and regional budgeting in lawfully,
e. to conduct research to the improvement of the business of tourism.
Meanwhile, its function encompassing
a. as the coordination board in the tourism promotional that have been undertaken by
tourism practitioners
b. as a working partner of government both central and regional levels.
In the liberalization of services, promotion of tourism is one the most valuable and
meaningful strategy for moving forward. At least, it has major functions encompassing:
1. building and restoring our image. For tourism, image is more important than tangible
resources, all because perceptions rather than reality are what motivate consumers to
act or not act (Gallarza in Pitana,2005:65).
2. focusing to campaign our nature wealth, cultural heritages and human environmen
which have been generally assumed as our competitive advantage and introducing
special policies and programs which have been made by government and business
practitioners.
8
3.
notifying all measures both preventive and represive of government to reassure
international community that they have been serious in managing detrimental effects
of tourism both economy, social and culture.
c. CONCLUSION
The perspective of liberalization of services in the law number 10 year 2009 can be
divided into three kinds of perspective comprising short-term perspective, mid-term perspective
and long-term perspective. There are four measures whose it results can be assesed effective or
not, no longer than five years including the increasing quality of human resources, the
empowerment of small-medium enterprises, the involvement of stakeholders and the establishment
of tourism promotional board. All those measures must be implemented promptly and consistently
to build our tourism capacity and mobilize its resources as a means of growing our
competitiveness and eficiency.
The recognition of tourism activities as a human right and the actualization of nondiscrimination principle are the next measures which can be categorized as mid term perspective.
These measures will become a golden bridge to build, promote and maintain our competitive
advantage in tourism which is well-endowed by natural wealth, cultural heritages and human
environment. Hence, the stressing point of preservation of their capitals can be categorized as
long-term perspective in a view with liberalization of services.
Nevertheless, all measures have not finished yet because a great concept need a great
implementation. Tourism must be viewed holistically and integrally and government both central
and regional levels must further formulate technical details to elaborate all of their measures.
Other stakeholders including tourism business practitioners and people must take an equal
responsibility. They must be aware and care if their viable participation can assist government in
navigating our tourism sector amid the liberalization of services era.
REFERENCES
-
Clift
R,2003.
Background
Paper
on
the
General
Agreement
Services,http://www.cufa.bc.ca/brief/gats.html. Retrieved on 2009-06-02
on
Trade
-
Pascal Lamy.2009. Globalization and Trade Opening Can Promote Human
http://www.wto.org/english/news_e/sppl_e/sppl128_ehtm. Retrieved on 2009-06-04
- Pitana, I Gde dan Gayatri, Putu G,2005. Sosiologi Pariwisata, Yogyakarta: Penerbit Andi
in
Rights,
-
Small-Scale
and
Micro
Establishment
http://www.bps.go.id/sector/comser/index.html. Retrieved on 2009-06-06
Statistics,2009.
-
Tourism
and
Travel-Related
Services,
http://www.wto.org/english/tratop_e/serv_e/tourism_e.htm. Retrieved on 2009-06- 04
-
World
Tourism
Organization,2008.
"
UNWTO
World
Tourism
Barometer
(PDF).http://www.tourismroi.com/Content_Attachments/27670/File_633513750035785076.pdf.
Retrieved on 2009-06-01.
-
World
Tourism
Organization,
http://unwto.org/facts/eng/pdf/barometer/unwto_barom07_2_en.pdf. Retrieved on 2009-05-29
2004,
2007.
- World Trade Organization, 2004. Why Is The Liberalization of Services Important?, GATS: Fact or
Fiction (online), http://www.wto.org/english/traptop_e/gats_factfiction.htm Retrieved on 2009-05-29.
-
Law Number 10 Year 2009 Regarding Tourism
- Law Number 17 Year 2007 Regarding The National Plan of Long Term Development (RPJP)
9
in the Law Number 10 Year 2009 Regarding
Tourism
I Gusti Ngurah Parikesit Widiatedja,S.H.,M.Hum.,LLM.
Paper Presented in
International Seminar
“Economic Approach to Law in Tourism Industry”
Jointly organized by
Master Program in Law Udayana University, Faculty of Law Udayana
University and Metro Faculty of Law Maastricht University, The
Netherlands In Cooperation with Master Program in Notary Udayana
University and Doctoral Program in Law Udayana University
Denpasar, 28 August 2015
1
2
TABLE OF CONTENT
A. BACKGROUND
B. SOME HIGHLIGHTS IN RELATED WITH LIBERALIZATION OF SERVICES
C. CONCLUSION
D. REFERENCES
3
The Perspective of Liberalization of Services
in the Law Number 10 Year 2009 Regarding Tourism
IGN Parikesit Widiatedja,S.H.,M.Hum.,LLM.1
Faculty of Law Udayana University
a. BACKGROUND
In the third milenium, a challenge ahead is obviously convoluted which is being discerned
by liberalization in many fields. It had been epitomized through comprehensive negotiations of
trade in Uruguay Round when 123 nations agreed to establish the World Trade Organization
(WTO) in Marakesh, Marocco. That crucial moment could be a stepping stone of proliferation in
liberalization because of their substantial coverages encompassing investment, intelectual
property rights and services were an integral part of tradable activities.
Despite being debatable, all participants commited to establish a multilateral framework of
principles and rules for trade in services that were well-approved as General Agreement on Trade
in Services (GATS). They had hoped if GATS with entered into force in january 1995, could
remove any restrictions and internal governmental regulations in the area of services whose
impact eventually emerged trade harrasment. It was also closely related with the potential
contribution of services for the world economy which are going to be the largest and fastest
growing sector. In 1999, the value of cross-border trade in services amounted to US$ 1350 billion,
or about 20% of total trade. This understates the true size of international trade in services much of
which takes place through establishment in the export market, and was not recorded in balance of
payments statistics. Since the past two decades, trade in services has been growing faster than
merchandise trade2.
Indonesia binded itself through promulgating law number 7 year 1994 regarding The
Ratification of Agreement of Establishing the World Trade Organization (WTO) including GATS.
The increasing performance of development was an essential consideration to ratify its agreement
that was progressively allowed the operation of foreign services provider. Indonesia’s government
though over that GATS would be a conduit of its goal to be just and properous of our community
which is clearly mentioned in the preamble of the Constitution of the Republic Indonesia of 1945.
As a sector that has been legally binded in GATS, tourism is moving to be one of the most
dynamic sector of economic activity, generating a wide range of benefits including foreign
exchange earning and a growing contribution to the GDP which in some cases reaches over 10%.
Tourism has been a popular global leisure activity. In 2007, there were over 903 million
international tourists arrival, with a growth of 6.6% as compared to 2006. International tourist
receipts USD 856 billion in 20073.
Based on that figures, it is not coincidence if all countries attempt to lure many tourists as
much as possible that were openly liberalized as impact of GATS. Myriad special programs of
tourism with followed by creative and innovative promotions have been undertaken. They believe
1
Lecturer of Faculty of Law Udayana University
World Trade Organization, 2004. Why Is The Liberalization of Services Important?, GATS:
Fact or Fiction (online), http://www.wto.org/english/traptop_e/gats_factfiction.htm Retrieved on 2009-0529.
3
World
Tourism
Organization,
2007.
http://unwto.org/facts/eng/pdf/barometer/unwto_barom07_2_en.pdf. Retrieved on 2009-05-29
2
4
if tourism that is viewed as the colaboration of amusement, entertainment, enjoyment and
education, will be a robust sector and can be immune from the symptom of economic slowdown
currently.
Desiring to build capacity and mobilize all resources of tourism all at once compete
globally, Indonesia has promulgated the law number 10 year 2009 regarding tourism. As reffered
to its consideration, the development of tourism shall be aimed to encourage equally opportunity
of doing business, gains substantial benefit and faces again challenge of immense change both
locally and nationally as well as globally. The content of this law encompassing the right and
obligation of tourism practitioners, the development of tourism in comprehensively and
sustainably, the coordination of across sector, the establishment of strategic area, the
empowerment of small-medium enterprises, the establishment of tourism promotional board, the
establisment of asociation of tourism, the standarization and competency of tourism employee and
the empowerment of human resources.
This discourse attempts to identify meticulously which content of its law can be clustered
as government’s perspective in responsing liberalization of services. Author think over that it is
worthwhile to analyze and asses the readiness of tourism stakeholders to compete either directly
or indirectly with foreign services provider, that have been rampant in Indonesia after the
enactment of GATS. Desiring to engender a positive outlook of our future, Author expects to
convey clearly information for socializing and disseminating the newest law of tourism in a view
with liberalization of services.
b. SOME HIGHLIGHTS IN RELATED WITH LIBERALIZATION Of SERVICES
1. The stressing point of preservation of nature, culture and human environment
Refering to the consideration of the law of tourism, our natural wealth which are granted
and entrusted by God as well as cultural heritages, have becomed huge capital and resources for
the development of tourism to be just and prosperous of Indonesia’s community. Hence, as an
integral part of our national development, tourism is designed sistemically, well-planned,
integrately, sustainably and responsibly as a means of protecting our religious value, cultural
heritages and the conservation of human environtment.
All those concepts have been elaborated in several articles in law of tourism. Article 4
point e and f, have decided if tourism has a main goal to preserve our natural wealth, human
environment and cultural heritages. As reffered to article 5 point d, The implementation of
tourism principle must not neglect with the preservation of nature and human environment. In
article 6, The Development of tourism must be undertaken based on article 2 through realizing the
action plan of the development of tourism concerning natural and cultural diversity, uniqueness
and characteristic as well as and the fulfillment of human need in tourism activity.
As a concrete measure, government which is clearly mentioned in article 12(1), has finally
decided a strategic area of tourism which becomes particular area with the high level of potential
development and has significantly influenced of tourism activity that underlied by several aspects
comprising tourism and natural resources, potential market, strategic position, protection of certain
location which has a role for maintaining tourism function and its carrying capacity, strategic area
which has a role for protecting cultural assets, the support and readiness of people and the relevant
characteristic of its location.
The stressing point of preservation of natural wealth, cultural heritages as well as human
environment can also be reflected from article 23 (1) which is strictly obliged all governments both
central and regional levels to maintain, improve and preserve our national assets that becomes
national attraction of tourism which have not been explored yet. In financial aspect as reffered to
article 57 untill 59 that becomes collective responsibility of tourism stakeholders, government is
5
also obliged to alocate at least half of their income from tourism activities for the preservation of
natural and cultural needs.
No one can deny if our natural wealth, cultural heritages and human environment are three
inseparable capital that can be regarded as our comparative advantage for competing in
liberalization era. The sucessfully implemented of tourism managerial will depend on our
harmonious and balance principle while gaining benefit from their components. Due to its
priceless and irreversible value, they must be exploited, preserved and passed on with three main
pilars comprising economically viable, lawfully creditable and environmentally sustainable.
The political will of government through its law of tourism to stress our natural wealth,
cultural heritages and human environment all at once in financial obligation to manage them has
been commendable. It must become a starting point to optimally enhance our comparative
advantage. As a reality of contemporer and need to be promptly responded, liberalization of
services requires the high level of management with fully covered by broader paradigm and
concept, transparency administration, financial accountability, and effective supervision in tourism
as well as supported by actively participated of all tourism stakeholders including people and
tourism practitioners. Because of its law, government has formed the main priority of our tourism
concept and it should be easier and well accepted for other relevant stakeholders to uphold it
because they know what should be developed and placed as a primarly priority of doing activities
in tourism.
Nonetheless, we must be aware and alert with the detrimental effects which easily arise
from unbridled and uncontrolled of developing tourism. The exploitation of those components will
be occurred if it is treated without any respect and responsibility and only become commercial
comodities to pursue short-term progress. It can not only be assumed that the more tourists here,
the bigger income will be. That is the main challenge to all stakeholders how to see clearly if all
those components must be administered to maximize the benefit while minimizing the negative
one as well as consider with our future generation needs.
2. The Recognition of Tourism activity as a human right.
Refering the consideration of law of tourism, the freedom to undertake travel and leisure
activity is strictly recognized as a human right. Article 5 point b has expressly stated that the
management of tourism based on a human right recognition, cultural diversity and local wisdom
with followed by article 19 (1) point a that mentioned if every people has a right to fullfil their
needs in tourism activity.
This effort must be applauded as it denotes the government commitment to recognize and
ensure social and economic rights as well as civil and political rights.4 Afterwards, it will
reinvigorate tourism sectors which has ever got ordeal such as catastrophic disaster, horrible
terorism and terrible disease. Eventually, Indonesia’s tourism can be exist even thrive in facing
fierce competition as impact of liberalization of services without neglecting with its goal to reduce
unemployment, alleviate poverty and rectify imbalances in our national development.
However, this concept does leave ample room for interpretation whose its term and
meaning has not really been comprehended well by tourism practitioners. Notwithstanding of its
article, how do we uphold it concept while the awareness, perception and recognition in other
sectors which have been promoted since the last decade, have been relatively low. Furthermore,
government who ought be a role model, has been unable to enforce human rights abuses which
was committed in the past.
3. The actualization of non-dicrimination Principle
Desiring to facilitate the increasing participation of all stakeholders, they have an equal
right of doing tourism activities. Government is also formally obliged to provide condusive
4
Pascal Lamy.2009. Globalization and Trade Opening Can Promote
http://www.wto.org/english/news_e/sppl_e/sppl128_ehtm. Retrieved on 2009-06-04
6
Human
Rights,
climate for business activities such as equal oppurtunities and law certainty. It can be found in
article 23 point b. Meanwhile article 26 point c also oblige that every business practitioners of
tourism must provide services in line with non-dicrimination principle.
Non-discrimination principle must be accorded immediately and unconditionally that
should become a paramount prerequisite in every movement of liberalization in all countries entire
the world. The enforcement of its principle will eliminate differencial treatments in order to protect
certain products both production and distribution as well as consumption levels from person or
legal entities who have intimate relationship with the decision maker which tend to be deceptive
and fraud. Unfair trade and monopoly as impact of their activities are the major argument why all
those thing is very taboo to be undertaken currently.
4. The increasing quality of human resources.
Pursuant to Article 11, government in together with concerned institution must conduct
sustainably research and improvement for tourism in order to support the development of tourism.
Afterwards, article 26 point h emphazis that every business practitioners of tourism are obliged to
strengthen the quality of their employee through education and training skills. Meanwhile,
government as reffered to article 28 point g, has authority to the improvement of human resources
through its policy in tourism. Meanwhile, the sertification and standarization of employee in
tourism can also be categorized as a government measure to increase our quality of human
resources. As referred to article 53, all employees who involve in business activities of tourism
must have the standart of competency through sertification of competency which has been
conducted by the institution of profesional sertification.
Government admitted that one of the main obstacle was the low quality of human
resources. As reffered to the law number 17 year 2007 regarding The National Plan of Long-Term
Development (RPJP), our human development index still 0,697 and placed in 110 out of 177
countries with the purchasing power parity only reach US$3.361. It triggered a low performance
of development as human resources even created the inundation of unemployment here which
fully covered by low-level of skills, poor-concept of management and pragmatism of mindset.
Desiring to embattle all those challenges, the implementation of government measures for
increasing human resources of tourism shall ensure to produce well-qualified both knowledge and
skills and mold their character as a part of human empowerment who are able to partake and
compete mainly with foreign services provider. All those strategies can be conducted either
through formal and informal education. The excellent curricula which becomes a general guidance
in a view with the management of human resources, ought to be a starting point to attain our goal
as a means of building our domestic services capacity and its competitiveness as well as eficiency
in the liberalization of services era.
5. The empowerment of small-medium enterprises
Article 17 clearly mentioned that government in any levels are obliged to improve and
protect small medium enterprises in tourism through a policy in order to reserve business activity
of tourism for small-medium enterprises and cooperation. Beside that, they are also obliged to
facilitate joint partnership beetwen small medium enterprises and cooperation with the giant of
tourism business on a mutually advantageous basis.
The number of small medium enterprises is high in all sectors. Recent data from
Indonesia’s statistics bureau showed that in 2006 they accounted for 99,98 % of all enterprises
and absorbed over 61 milion job or slightly over 60% of total empoyment of
Indonesia.(Indonesia’s Statistics Bureau,2009) That’s why they have cardinal role in the
development of the local economy especially in reducing poverty by creating job opportunities.
Sketchily, empowering them means empowering the public economy, potentially propelling
sustainable growth.
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In the perspective of the liberalization of services, its reality will invite foreign service
provider in Indonesia which can be categorized as high-scale of business with their sophisticated
technology and infrastructures, unlimited fund, well-prepared skills and well-organized teamwork.
It will not be fair if they can compete unconditionally with small medium enterprises and
cooperation as the biggest portion of our economic posture. In terms of welfare state, It is
reasonable and undeniable if Government must protect them to keep their existency growing. The
development of small-medium sector eventually will be a pathway to progress of a sustainable
economy and also a sense of national pride.
Hence, government measures shall be aimed at assisting and facilitating small-medium
enterprises and cooperation in overcoming their major constraints to grow up emanated from the
low level of technology, shoddy skills of management, traditional concept of marketing,
cumbersome licensing, limited funding, difficulty of acessing credit and high pollution of
environmental performance.
6. The involvement of all stakeholders
Article 9 (4) has clearly mentioned that government must involve and facilitate actively
participated of all stakeholders while formulating an action plan of tourism. Likewise in the
financial aspects as reffered to article 57 which is also mentioned as collective responsible.
Based on its law, Government is cognizant that the development of tourism must involve
broader participation of all stakeholders in which their policies are being executed. As a part of
good governance principle, this measures also crystallise their aspirations to be strong and
cohesive movement of managing tourism. It will be a positive and constructive balancing power
to see more independently and clearly how to navigate tourism activities based on sustainable
development principle. A lot of information can be absorbed from them like what are the benefits?
what are the obstacles? what are they going to do? And what do they expect in the future? In the
other word, the involvement of all stakeholders will engender aptly policy all at once create a huge
opportunity to boost the carrying capacity of tourism.
7. The establishment of tourism promotional board
As reffered to article 36, it is clearly mentioned that government is obliged to facilitate the
establishment of tourism promotional board which is located on the capital of Indonesia. This
board is private institution which has independent position. Afterwards, article 41 has elaborated
the task of tourism promotional board encompassing
a. to increase Indonesia’s tourism image,
b. to increase the number of foreign tourist arrival and foreign exchange income,
c. to incrase the number of domestic tourist arrival and its educational process,
d. to collect fund apart from national and regional budgeting in lawfully,
e. to conduct research to the improvement of the business of tourism.
Meanwhile, its function encompassing
a. as the coordination board in the tourism promotional that have been undertaken by
tourism practitioners
b. as a working partner of government both central and regional levels.
In the liberalization of services, promotion of tourism is one the most valuable and
meaningful strategy for moving forward. At least, it has major functions encompassing:
1. building and restoring our image. For tourism, image is more important than tangible
resources, all because perceptions rather than reality are what motivate consumers to
act or not act (Gallarza in Pitana,2005:65).
2. focusing to campaign our nature wealth, cultural heritages and human environmen
which have been generally assumed as our competitive advantage and introducing
special policies and programs which have been made by government and business
practitioners.
8
3.
notifying all measures both preventive and represive of government to reassure
international community that they have been serious in managing detrimental effects
of tourism both economy, social and culture.
c. CONCLUSION
The perspective of liberalization of services in the law number 10 year 2009 can be
divided into three kinds of perspective comprising short-term perspective, mid-term perspective
and long-term perspective. There are four measures whose it results can be assesed effective or
not, no longer than five years including the increasing quality of human resources, the
empowerment of small-medium enterprises, the involvement of stakeholders and the establishment
of tourism promotional board. All those measures must be implemented promptly and consistently
to build our tourism capacity and mobilize its resources as a means of growing our
competitiveness and eficiency.
The recognition of tourism activities as a human right and the actualization of nondiscrimination principle are the next measures which can be categorized as mid term perspective.
These measures will become a golden bridge to build, promote and maintain our competitive
advantage in tourism which is well-endowed by natural wealth, cultural heritages and human
environment. Hence, the stressing point of preservation of their capitals can be categorized as
long-term perspective in a view with liberalization of services.
Nevertheless, all measures have not finished yet because a great concept need a great
implementation. Tourism must be viewed holistically and integrally and government both central
and regional levels must further formulate technical details to elaborate all of their measures.
Other stakeholders including tourism business practitioners and people must take an equal
responsibility. They must be aware and care if their viable participation can assist government in
navigating our tourism sector amid the liberalization of services era.
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