JAKARTA, KOMPAS – The year-end peak season is a significant period for tourism businesses. Hotel occupancy and length of stay are key indicators of performance. Now, they are focusing on room sales, shifting from marketing multi-purpose spaces or ballrooms.Tourism businesses see Christmas and New Year's as peak season, before facing the lowest occupancy rates of the year, Ramadan. With such uncertainty and weak purchasing power, the challenge of even minimum performance is quite difficult."This is the challenge. We hope to achieve around 70 percent occupancy, and that would be great. That's the target, but we're not a problem with 60 percent. However, if we can achieve a seven-day occupancy increase, that would be more appealing," said Maulana Yusran, Secretary General of the Indonesian Hotel and Restaurant Association, when contacted in Jakarta on Sunday (November 1, 2026).Instead of achieving 80-90 percent occupancy in a short period, PHRI stated that it would be more profitable to only achieve 60 percent occupancy but with longer stays. This is because hotels adopt a dynamic pricing system. Prices will increase when demand is high, and vice versa.If hotel occupancy reaches 70-90 percent for two days but then drops to 40 percent due to decreased demand, such fluctuations are not effective in boosting the performance of hotels and restaurants."Comparing (occupancy) at 60 percent, but with a duration of up to seven days, would be much better in our view. During Christmas and New Year, as well as the Eid holiday, we always aim for high occupancy and ideal duration. Ideally, it should be above the average of 60-70 percent," Maulana stated.To boost hotel performance, business owners are focusing on room sales rather than relying on meetings, incentives, conventions, and exhibitions (MICE). Following a significant decline in MICE activities due to government budget cuts, room occupancy has become a major contributor to the revenue of hotels and restaurants.Moreover, the operational costs for hotel and restaurant managers have surged due to numerous new regulations that burden them. This situation requires evaluation. "The market is declining, yet licensing fees are increasing, and obligations are rising. This is what the government should evaluate," said Maulana.One of the issues raised is the requirement for certification. The government, for instance, mandates halal certification. However, hotel operators perceive an imbalance between the number of certification bodies and the industry's needs."The impact is that certification costs are high. Not to mention that auditors are located in various places, requiring travel to multiple locations. Travel expenses are borne by businesses, which ultimately pass those costs on to consumers. As a result, prices for goods and services increase, and we are quite concerned about that," Maulana said.Separately, on Wednesday (14/10/2026) during a press conference, the Chairman of the Indonesian Tourism Industry Association (GIPI) stated that the current regulations are high-cost regulations.Some of these include certificates of functional suitability for buildings, increases in land and building tax rates, permits related to the environment, and an integrated online single submission (OSS) system that covers all the permits that must be completed."Meanwhile, the licensing process is mostly shifted to the central government, making the licensing process longer and more expensive," he said.Halal certificationLike Maulana, Hariyadi stated that all links in the hospitality supply chain are required to obtain halal certification. If any of these links involve micro, small, and medium enterprises (UMKM) that have not secured halal certification, this situation also hampers the performance of entrepreneurs."Therefore, our colleagues in the retail sector have suggested that we reassess our readiness. This is because it's not just the parent company that requires certification; the entire supply chain must also be evaluated for its certification," said Hariyadi.Sugiri Willim, Chairman of Human Resources & Certification in the Restaurant Sector at PHRI, added that the certification being implemented will not only cover the ingredients consumed but also the materials used. This includes aspects such as the shoes worn by staff and the ceramic tiles underfoot, which will also require halal certification.In fact, not all goods produced come from large manufacturers; a significant portion still originates from small and medium-sized enterprises (SMEs) that supply materials and other components. Readiness at this level remains low due to differing requirements."We believe that the Halal Product Assurance Agency (BPJPH) has not conducted adequate outreach and guidance for the public and companies. There is a request from the association that the retail sector needs to be given better preparation time," said Sugiri.Previously, the government mandated the implementation of halal certification to take effect on October 18, 2026, in accordance with Government Regulation No. 42 of 2024. However, feedback and evaluations from business and industry stakeholders prompted the government to adjust the timeline to strengthen the ecosystem and ensure readiness among all parties. The certification deadline has been extended to October 17, 2028.It's not a matter of intentionAccording to Sirajul Arifin, Dean of the Islamic Economics and Business Faculty at UIN Sunan Ampel Surabaya, the postponement of halal obligations is a significant transitional strategy aimed at building a sustainable halal ecosystem. As the country with the largest Muslim population, exceeding 240 million, Indonesia also has substantial expenditures on halal products.According to the State of Global Islamic Economy Report 2024/2025, Muslims worldwide spent up to $2.29 trillion on halal products, with Indonesia ranking among the top five consumers. However, the Global Islamic Economy Indicator 2024 places Indonesia in third position, just behind Malaysia and Saudi Arabia. The country's halal product exports still lag significantly behind Brazil and other non-Muslim nations.Sirajul believes that the fundamental issue lies within Indonesia's halal ecosystem. The country is home to 64.2 million micro, small, and medium enterprises (MSMEs), contributing 61 percent of the national gross domestic product (GDP). However, as of 2024, the BPJPH and the National Committee for Sharia Economy and Finance (KNEKS) report that only about 3 million MSME products are certified halal, with approximately 2.1 million businesses involved."This means that more than 95 percent of our MSMEs have not yet entered the halal certification system. Does this large percentage of MSMEs indicate an anti-halal stance? Certainly not. Research shows that the obstacles are not due to intent, but rather three fundamental issues: literacy and access; incentives; and trust and governance challenges," Sirajul stated.To address this issue, three proposals need to be promptly implemented. First, building digital trust through halal tracking. Looking at other countries, consumer confidence increases when they can trace a product's journey from the farm to their table via QR code detection.Indonesia can also present a trustworthy halal label that includes comprehensive data on raw materials, certification, distribution, and financing for halal SMEs, ensuring that all information is accurately recorded and cannot be manipulated.Secondly, the empowerment mechanism is established through the integration of social finance in accordance with Islamic principles. This includes aspects of zakat, infak, sedekah, and wakaf, which have a potential value reaching hundreds of trillions of rupiah. Thirdly, environmental, social, and governance (ESG) principles serve as global standards that guide these efforts.