The rising gasoline price in Indonesia leads the climbing commodity price of the country. Bali is influenced by this change, leaving a %50 higher in transportation fee, %15 higher in hotel fee, and also in vegetables and food. It is expected that the raising price of these essentials would have negative impact on the travel business. The Government of Indonesia has canceled the oil allowance which was implemented since 1945. After that, the gasoline price goes up by %44, the diesel price growths up by %22. People are all complaining the change.  

Like Us on Facebook

The Indonesia Tourist and Catering Association said that the reservation charge would go up because of the situation, and a %15 additional charge is estimated. They said they will accept the action taken by the government, and these additional charges will be transfer to the consumers without doubt.

For those scheduled tourist and reservation before the federal action, there are not going to charge additional reservation fee; however, the contract does allow the associations to charge for more for some certain situation, such as this time.

Businessmen and tourist complained this on Facebook, saying that the food price is rising before the government officially cancels the allowance. Meiyue Chen, who operates the holiday inn in Bali, told the journalist that people have to pay 50,000 Indonesian Rupiah (Rp) for only two onions. Some of her Japanese friends pointed out that the commodity is even more expensive than in Japan. Mango is around 50,000 Rp Indonesian Rupiah for one kg, and peppers are 20,000~30,000 Rp for one kilogram, which were only 5,000~6,000 Rp before. Ms. Chen thinks that the current situation would bring more profit to both the luxury hotels and those local economic home-stays; however, it would be a great challenge for those between them. The entire commodity pricing system has been twisted.