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

Police in Yogyakarta have uncovered an alleged case of child abuse at a daycare facility in the Sorosutan area of Umbulharjo. The case emerged after officers raided the Little Aresha daycare following a report from a former employee. Yogyakarta City Police Chief Senior Commissioner Eva Guna Pandia said the report prompted immediate action. “Initially, the […]

A Sumatran orangutan (Pongo abelii) has been recorded crossing a man-made canopy bridge in North Sumatra for the first time, marking a development in wildlife conservation efforts. The crossing took place in Pakpak Bharat Regency, where a rope bridge was installed above the Lagan-Pagindar road. The structure was designed to reconnect forest areas divided by […]

Fans of 5 Seconds of Summer or 5SOS can now mark their calendars. The Australian pop-rock band has confirmed a Jakarta stop on their “EVERYONE’S A STAR! WORLD TOUR 2026”. The show will take place on 14 November 2026 at Indonesia Arena in Senayan. It marks the band’s return to Indonesia after their last performance […]

A collision between a long-distance train and a commuter line train at East Bekasi Station in West Java left 15 people dead, authorities confirmed. The incident involved the Argo Bromo Anggrek long-distance train and a Cikarang-bound Commuter Line service. It occurred at around 9:00 p.m. Western Indonesian Time on Monday, April 27, 2026. Head of […]

Indonesia Guide

Just For Fun

Write For Us

Exclusive Promotions

Event Gallery