"Dream - The Ministry of Finance (Kemenkeu) responded to protests from several entertainment entrepreneurs, including celebrities, regarding the adjustment of the entertainment tax rate which ranges from 40 percent to 75 percent. Well-known figures such as Inul Daratista and Hotman Paris also expressed their disagreement. The amount of this tax levy is regulated in Law Number 1 of 2022 concerning Central and Regional Financial Relations or the HKPD Law for taxes on discotheques, karaoke, nightclubs, bars, and spas."

"Besides being enjoyed only by certain segments of society, the financial performance of karaoke businesses, nightclubs, and spas is also considered to have recovered to pre-pandemic levels. Lydia noted that local tax revenue from such entertainment reached IDR 2.4 trillion in 2019. Meanwhile, internal data for the ongoing year 2023 has accumulated to IDR 2.2 trillion."

"So, in 2019 the total revenue from entertainment tax was Rp2.4 trillion. In 2020, due to Covid, it dropped to Rp787 billion. In 2021, it further decreased to Rp477 billion. Then in 2022, due to Covid, it increased from Rp477 billion to Rp1.5 trillion. And now it is almost approaching the level before Covid, our data for 2023 is currently Rp2.2 trillion," said Lydia."

"Lydia mentioned that the HKPD Law also continues to open opportunities for business actors in nightclubs, karaoke, and spas to apply for incentives for those who find it difficult to pay their tax obligations. The provisions for this relief are regulated in Article 101 of the HKPD Law. 'However, in the future, the concerned business actors will be required to submit financial reports to each respective regional government,' concluded Lydia."