Jakarta Hotel & Restaurants Tax Discounts

Jakarta Hotels and Restaurants to Receive Tax Discounts Until End of 2025

Share:

The Jakarta Provincial Government has introduced a series of tax discounts for hotels and restaurants in the capital, aimed at strengthening economic growth and ensuring business sustainability.

The policy is formalised in Governor’s Decree No. 722 of 2025, signed by Governor Pramono Anung on Monday, 25 August 2025.

The decree provides a reduction of between 20 and 50 per cent in specific goods and services tax obligations for the hospitality and food and beverage sectors. The first scheme offers a 50 per cent reduction in hotel service tax liabilities from 25 August until September 2025.

As reported by CNBC, from October until December 2025, the reduction will fall to 20 per cent. In addition, food and beverage services will enjoy a 20 per cent reduction from August until the end of the year.

“This decision was made to maintain the continuity of taxpayers’ businesses in the hotel and restaurant sector, while supporting Jakarta’s economic growth,” Governor Pramono stated at City Hall. “Today, I signed Governor’s Decree No. 722 to ensure that businesses can remain healthy and competitive.”

Requirements and Impact of Tax Discounts

Businesses seeking to access the incentives are required to submit a statement declaring their willingness to report transaction data electronically through the e-TRAP system, which is already widely used in Jakarta.

Pramono emphasised that the measures are both an economic stimulus and a form of recognition.

“It is not because I am complaining, but rather because I am surprised that the level of tax compliance in Jakarta is very high. Because payments are going well, I am providing incentives. This is a form of appreciation as well as a way to maintain a healthy business climate,” he said.

He added that the decision was taken after careful consideration of the contribution the hospitality and restaurant sectors make to the city’s economy. According to government data, the sector contributes around 14 to 15 per cent to Jakarta’s economic growth, a figure that stands above the national average.

The Governor expressed his hope that the tax relief will help businesses maintain stability during a period of economic uncertainty.

“I hope that the business world in Jakarta can continue to survive and grow well,” he said.

The incentives underline the government’s broader strategy of encouraging investment and supporting sectors most directly linked to Jakarta’s international competitiveness as a tourism and business hub.

By reducing costs for hotels and restaurants, the government aims to boost demand, attract more visitors, and protect jobs in industries that employ tens of thousands of residents.

Find this article helpful? Check out more Indonesian News from Social Expat:

SEO Writer

Imelda is a content writer specializing in viral news and Indonesian culture. Her work revolves around researching and analyzing current events, social media trends, and popular culture.

Related News

Two TransJakarta buses collided head-on on Corridor 13 in the Cipulir area of Kebayoran Lama, South Jakarta, on Monday morning, injuring 24 passengers. The incident occurred at approximately 07.15 WIB on the elevated busway connecting Ciledug and Tendean. Kasubdit Gakkum Ditlantas Polda Metro Jaya AKBP Ojo Ruslani said the crash took place on a two-way […]

A foreign woman was taken to immigration authorities after disrupting a Quran recitation at a prayer room in Gili Trawangan, North Lombok, West Nusa Tenggara. The incident occurred on the first night of Ramadan in Gili Trawangan Hamlet, Gili Indah Village, Pemenang District. The disturbance was recorded and later circulated on social media. Head of […]

The presence of Lalisa Manobal, widely known as Lisa of BLACKPINK, in Indonesia has drawn significant public attention, particularly after she was spotted at several locations in Jakarta. Videos circulating on TikTok and Instagram show the K-pop star visiting malls and cafés, prompting widespread discussion among fans and social media users. Lisa Blackpink in Indonesia: […]

The Jakarta Provincial Government has issued a circular regulating the operating hours of nightlife and tourism-related businesses during the holy month of Ramadan and Eid al-Fitr. The circular, registered under Number: e-0001 of 2026 concerning the Implementation of Tourism Businesses During the Holy Month of Ramadan and Eid al-Fitr 1447 H/2026 AD, was signed on […]

Expat Events

Indonesia Visas

Expat Event

Business Networking
150,000
Casa Cuomo Ristorante & Lounge
Unofficial Networking Event
FREE
Shooter Bali

Indonesia Guide

Just For Fun

Write For Us

Exclusive Promotions

Event Gallery