The Ministry of Tourism and Creative Economy, led by Sandiaga Uno, has announced plans to implement a 40% to 75% increase in entertainment tax for Balinese entrepreneurs in 2024. This decision has sparked strong protests from various sectors, including hotels and spas, who argue that the hike is excessively high and poses a significant burden.
Sandiaga Uno addressed the issues’s concerns, stating, “There was a negative response from business owner in the tourism and creative economy, especially in Bali, regarding the 40% increase in entertainment tax in Bali, including the spa industry,” during The Weekly Brief with Sandi in Jakarta on Wednesday (10/1/2024).
Despite the backlash, Sandiaga reassured that the new tax regulations would not cripple businesses in the tourism sector. The controversy surrounding the tax increase also drew the attention of Hotman Paris, a prominent Indonesian lawyer with extensive business interests in Bali.
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Hotman Paris, a well-known Indonesian lawyer, expressed strong opposition to the proposed entertainment tax increase through a post on his official Instagram account (@hotmanparisofficial). He argued that there is no justification for the sudden tax hike, especially when comparing Indonesia’s policies to other tourist destinations like Thailand, where the approach is perceived as fundamentally different.
Hotman Paris raised concerns that implementing such a policy could significantly decline the number of foreign tourists visiting Indonesia. This comes at a time when Bali has recently been labelled as an ‘over-tourism city,’ attracting over 9 million foreign tourists in 2023.
The surge in tourist numbers, however, has not been met with adequate facilities and infrastructure. Bali has faced various challenges, including a high number of traffic accidents, road congestion, and a gradual increase in prices at tourist destinations, negatively impacting its tourism image.
