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PBB relief: A lifeline for retail, hotel and restaurant workers
Commercial properties such as hotels, exhibition halls and malls are battered. These are businesses with high fixed costs, made worse by the COVID-19 protocols. Even without visitors and activities, these properties still have to perform basic services and maintenance.
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Top of the world: A housing complex lies on the roof of the Thamrin City shopping center in Jakarta. The property industry has been hit hard by the COVID-19 pandemic. (JP/Donny Fernando)
C
arrying out social distancing, as mandated by the government, is no doubt our most basic civic duty during the C0VID-19 pandemic. Protecting public health trumps business.
Property operators are now resigned to inescapable eventualities. “Zero” mall visitors; “zero” hotel occupancy; “zero” exhibitions.
A heartbreaking number of staff have been made redundant. A meltdown is imminent. During this grave time, we have a responsibility to secure staff employment as much as we can. We need to maintain their income, livelihoods and dignity.
In light of this, we kindly implore the Jakarta government to consider granting property operators relief on property tax (PBB). Such a move can avoid more bankruptcies. The relieved funds will lift pressure off tenants, pay staff salaries and stop mass unemployment.
Commercial properties such as hotels, exhibition halls and malls are battered. These are businesses with high fixed costs, made worse by the COVID-19 protocols. Even without visitors and activities, these properties still have to perform basic services and maintenance.
Operators are now bleeding. The number of tourists in Jakarta in May this year was down 87 percent compared to the same period last year, according to Statistics Indonesia.
Starred hotel occupancy levels plunged to record lows: 12.7 percent and 14.5 percent in April and May respectively. Closing down hotels is financially more sensible than serving a handful of guests. Exhibition halls are dead. Restaurants, shops, salons, supermarkets—whose businesses are sinking as a result of the government-imposed large-scale social restrictions (PSBB)—are now unable to pay service fees and rents.
