REPUBLIKA.CO.ID, YOGYAKARTA -- Yogyakarta Mayor Haryadi Suyuti officially prohibited construction of new hotels in the city. He issued regulation prohibiting the permit issuance for the hotels establishment in the city.

According to Haryadi Suyuti, the regulation will be effective on January 1, 2014. "This is a temporary ban," he said in Yogyakarta City Hall, Wednesday.

The reason, he said, the new regulation would only be applicable until December 31 2016. Then there would be a review of the related regulation. Therefore, application for a permit of new hotels establishment registered before January 1 will still be processed.

"The number of hotels in Yogyakarta is quite a lot. We will see the progress,” said Haryadi.

According to him, the restriction intended for new hotels, while hotels that has been permitted and those on the phase to construction still be allowed to apply for a permit, including the construction of Tugu Station facility.

Head of Yogyakarta Licensing Services Department Setiyono said, the desire of investors to build hotels in Yogyakarta was quite high. Even in November there were four investors who have submitted complete file for permit application for a new hotel. "We will ensure the completeness of the file and field checks before issuing a permit," he said.

According to him, investor who have submitted a complete license application file would receive a receipt of permit registration, while investor who have not been able to complete the file will not obtain the receipt. "We have a service standard of hotel permit issuance a maximum of 17 days. Therefore, we only process the file that is already complete," he said.

In addition to the four investors who have submitted application file, Licensing Services Department also received 22 other new investors who expressed plans to apply for permission to build a new hotel. By 2013, there have been 37 five-star hotels in Yogyakarta and about 370 non-star hotels, as well as some hotels that are still under construction.

Head of Economy, Development Local Revenue and Cooperation Department of Yogyakarta Danang Subagjono said, investors who invest capital in Yogyakarta had increased sharply in the last two years. Even in 2013 the value of the investment in Yogyakarta rose remarkably to Rp 22.97 billion in 2012 to Rp 139.77 billion in 2013. 

"Most of them are the construction of hotels," he said.

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