Florian Klumpp

Apr 19, 2024 | eastasiaforum.org | Fangli Hu |Jun Wen |Florian Klumpp |Gilang Kembara

The Indonesian government’s tax hike on entertainment services has sparked widespread debate. Effective from January 2024, the tax rate surged up to between 40–75 per cent, up from 25–35 per cent for the specific goods and services tax in venues such as bars, nightclubs, beach clubs, karaoke lounges and spas. This proposal faced industry opposition, prompting its suspension for reassessment given the potential effects on the public, tourism and small businesses.