Within the context of the commitment to decentralize authority, the Government will soon allow regional authorities and the local chapters of the Indonesian Hotel and Restaurant Association (PHRI) to set the star-rating standards for local hotels in Indonesia.
The authority to set star ratings for hotels was formerly held by the Department of Tourism. The new system will reportedly involve local authorities in ensuring the hotels hold all the necessary permits and operating licenses, while a local committee would undertake a critical review of the hotel's management and services.
Consumer will also be involved in the review process although the nature of the public's participation is still unclear.
Hotels found to be offering services and facilities not in keeping with their star rating, would be warned and face a possible reduction in their star rating.
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