City Offers Up to 50 Percent Tax Incentive for Hotels and Restaurants
Reported by Dessy Suciati | Translated by Nugroho Adibrata
Jakarta Governor, Pramono Anung, announced a policy of tax incentives for the hospitality and restaurant sectors in Jakarta.
Today I signed Governor's Decree No. 722
This policy is outlined in Governor's Decree No. 722, which was signed on Monday (8/25).
According to Pramono, this tax incentive is given to maintain business continuity and support economic growth in Jakarta.
Pramono: Don't Worry, Property Tax Increase in Jakarta is Only 5-10 Percent"Today I signed Governor's Decree No. 722 on the sustainability of taxpayer businesses in the hospitality and restaurant sector to support economic growth in Jakarta," he said, at Jakarta City Hall.
Tax incentives provided consist of:
1. Certain Goods and Services Tax on Hospitality Services, taxpayers receive a 50 percent incentive of the total tax payable until September 2025.
2. Certain Goods and Services Tax on Hospitality Services during October-December 2025 is given a 20 percent incentive.
3. Food and Beverage Tax, taxpayers receive a 20 percent incentive of the total tax until December 2025.
This tax incentive is provided to support job creation and maintain fiscal incentives for entrepreneurs so they can survive in Jakarta.
"Taxpayers may submit a statement of willingness to report business transaction data electronically using the e-TRAPT system that we have been using, and business actors in Jakarta are already aware of this," he continued.
This policy is effective from the date of the Governor's Decree signing and will be re-evaluated subsequently.
"I truly hope that the business world in Jakarta can remain resilient and thriving because the Jakarta government has indeed provided many incentives so far," he explained.
He added that Jakarta Government's revenue from the taxation sector until August 2025 has reached approximately 14-15 percent, higher than the national level.
He also mentioned that this incentive is given despite the relatively high level of tax compliance in Jakarta. This policy is a form of appreciation and support from the government to business actors.
