"Dream – The DKI Jakarta Provincial Government has set an entertainment tax of 40 percent. This tax is specifically for certain entertainment services."
The regulation is stipulated in the Regional Regulation of the Special Capital Region of Jakarta Number 1 of 2024 concerning Regional Taxes and Regional Levies. Certain entertainment taxes subject to a 40 percent tax are regulated in Article 53 paragraph 2, which states, “Specifically, the PBJT [Specific Goods and Services Tax] rate on entertainment services in discotheques, karaoke, nightclubs, bars, and steam baths/spas is set at 40% (forty percent).”
Meanwhile, Article 1 of Article 53 states, “The PBJT rate on food and/or beverages, hotel services, parking services, and arts and entertainment services is set at 10% (ten percent).” This Regional Regulation is effective from the date of promulgation, which is January 5, 2024.
"Previously, a number of entrepreneurs complained about the amount of this entertainment tax. They believe that the tax is too high and threatens the sustainability of their businesses. They feel that the 25 percent tax that has been applied so far is already large."
"Just mention Inul Daratista. The dangdut singer complained about the amount of entertainment tax because she feels it could threaten the sustainability of her karaoke business, Inul Vizta. The dangdut singer from Pasuruan, East Java, even admitted that she is threatened to lay off 5,000 employees if the entertainment tax increases."
"Through Instagram, Adam Suseno's wife showed the condition at one of her karaoke places. She mentioned that the karaoke visitors are sparse due to high taxes. Inul even invited the Minister of Tourism and Creative Economy, Sandiaga Uno, to meet and discuss the new tax rates that are considered burdensome for entertainment entrepreneurs."
“
“I want to showcase my business that is set to have its taxes raised from 25 percent to 40-75 percent. If this really happens, 5,000 of my employees will be finished + along with my fellow karaoke business owners, there will be mass layoffs,” wrote Inul in a TikTok post @inul.daratista.
Not only Inul, but Hotman Paris also feels uneasy. The famous lawyer indeed has a nightlife entertainment business. He feels that the tax increase threatens his business.
”"Hotman even uploaded a video with other entrepreneurs to protest the new entertainment tax rate. He even asked President Joko Widodo to issue a Government Regulation in Lieu of Law to cancel the 40 percent entertainment tax."
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