Jakarta, IO – Entertainment tax in Jakarta has now increased to 40 percent based on Article 53 (2) of Jakarta Provincial Regulation 1/2024. This policy was signed by the Interim Governor of Jakarta Heru Budi Hartono.
The tax applies to discotheques, karaoke, nightclubs, bars and spas, and took effect since its promulgation on January 5, 2024. This increase is quite high compared to the previous tax rate, per CNN Indonesia, Tue (16/1).
According to Jakarta Regional Regulation 3/2015, the tax rate for discotheques, karaoke, nightclubs, pubs, bars, live music, music with DJs and the like was 25 percent. Meanwhile, the tax rate for massage parlors, steam baths and spas was set at 35 percent.
Lawyer Hotman Paris Hutapea previously appealed to President Joko “Jokowi” Widodo to issue a Government Regulation in Lieu of Law (Perppu) to cancel the 40 to 75 percent increase in entertainment tax. Hotman also urged business actors affected by the increase in entertainment tax to protest the “burdensome” tax hike.
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“We need to get the government attention before February 14, so a Perppu can be issued. If we are successful, that will be already a 60 percent win,” he said.
Hotman is not alone, singer and karaoke joint owner Inul Daratista also voice her opposition. She posted on her social media account that the tax increase will force entertainment players to go out of business. (bp)