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New 40% Entertainment Tax Should Not Worry Bali Tourists Minister Says 

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As backlash grows against the Indonesian government’s decision to introduce a 40% entertainment tax, the Minister for Tourism and Creative Economies, Sandiaga Uno, has spoken out to dispel any worries industry leaders and Bali tourists may have. 

Tourists Cheers Drinks At Bali Bar At Nighttime.jpg

Several high-profile entertainment industry entrepreneurs have spoken out against the government’s decision to introduce a 40% entertainment tax.

This price increase will apply to certain bars, nightclubs, beach clubs, spas, and other entertainment venues. 

As concerns from business owners and tourists grow, Indonesia’s Minister for Tourism and Creative Economies, Sandiaga Uno, has assuaged fears that the new tax could destroy the entertainment and tourism industry. 

@myfunnywoman Tourist hotspot, going off on a Tuesday #clubs #clubbing#bali#kuta#motelmexicola #travel ♬ original sound – Travel Corp.

Top Indonesian entertainment industry entrepreneurs have submitted a judicial review of the entertainment tax regulation that will see the entertainment tax rise to a minimum of 40% with a maximum of 75% at the Constitutional Court (MK).

Speaking at his weekly briefing, Minister Uno was bombarded with questions to which he called for calm.

He told reporters, “So I was given a brief from the legal team that since there is a judicial review process, let’s wait for the results of that process.”

@bali.explores Legendary sunsets and cocktails in 📍Rock Bar, Bali!🍹🇮🇩 @uniquepassports via IG #thingstodoinbali #baliindonesia #balibars #balitravel #balitips #baliactivities #hiddenbali ♬ Popular – Music from the HBO Original Series – The Weeknd & Madonna

He added, “I convey this to my colleagues in the regional government who will implement it because regional regulations and so on must be drafted to wait in detail for what will become the Constitutional Court’s decision.”

Minister Uno added that this process at the Constitutional Court is a review of the proposed legislative changes and that nothing has come into effect as of yet.

He said, “This process has only been entered into since 3rd January, and a discussion schedule is being prepared.”

“So please be patient, and at the same time, let’s use this opportunity to discuss finding a solution that advances the creative and creative industry and can also help strengthen state finances.”

@oldmans_bali Dance your heart out at oldmans #oldmans #canggu #bali #party #fyp ♬ original sound – Old Man's

He reminded reporters and the public that “no one has been harmed, no one has been killed. We must not be too polemical so that it creates negative perceptions [about Indonesia and the entertainment industry].”

Adding, “I’m worried that if we continue to escalate this, tourists will eventually see that there is a situation that is not conducive in Indonesia. Moreover, we are in the spotlight now that we have managed to recover.”

Tourists-at-Beach-Club-in-Seminyak-Bali-at-Sunset

Minster Uno concluded, “I want to keep the narrative positive. We can invite more tourists so that the target of 14-15 million in 2024 is achieved.”

On Wednesday, 17th January, the Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, took to social media and asked regional governments to postpone the implementation of the entertainment tax.

Cocktails-in-Nighclub-Bar-

Minister Pandjaitan echoed the concerns of business owners and tourists when he expressed his strong opinion on the tax increase.

He wrote, “I think I am very pro with it (postponing), and I see no reason for us to increase taxes from there.”

Minister Pandjaitan also wants there to be greater consideration of the impact such huge entertainment tax increases would have on Indonesian people.

While tourists could choose to visit another location with a more affordable entertainment tax (note that Thailand is reducing its entertainment tax in 2024), the possible negative impacts of this tax hike would be felt most by Indonesia’s low and middle-income earners. 

Tourists-Relax-and-Enjoy-KuDeTa-Beach-Club-IN-Seminyal-Bali

There is a feeling that increasing the entertainment tax will discourage ‘low quality’ and low-spending tourists to Indonesia’s top destinations, Bali included.

Yet, in reality, this tax would also discourage domestic tourists from exploring much of the country and see small and medium business owners in top destinations miss out on customers, affecting the livelihoods of millions of Indonesian people in the entertainment industry.

Such huge tax increases and the potential loss of customers could result in job losses, fewer working hours, or even business closures in Bali. 

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Chris

Monday 22nd of January 2024

Its part of totalitarian tiptoe, what is known in the west as Orwellian nightmare, in the Islamic world its known as sharia law.

The taxes in the west are more or less equal to what's happening in the Islamic world, the end goal is to encompass Bali into Sharia law. In the west Cigarettes are either banned or high taxed.

The only place on earth, where some sort of sanity would remain would be Thailand. They have extended nightlife time and reduced the taxes on alcohol also cannabis is legal, Philippines is going nuts as well with high taxes on alcohol. It seems only Buddhist majority country would be free

Harry

Sunday 21st of January 2024

Rediculous.

Rental prices up 100% Making it difficult locals survive on there already tiny pay.

Food prices also jumped up and now they want bring in a 40% tax that tourists shouldnt worry about.

Is that some kind of joke.

Prices are already inflated enough.

40% more you may as well close most of Kuta and other areas that attract ppl not wanting to be ripped off.

No one wants to pay more than needed.

Especially when there is a lack of infastructure and terrible waste management.

Bali isnt Dubai.

Businesses will loose customers and ppl will go to other more developed, cleaner and less expensive places such as Thailand..

The Island is not in a position to expect more from anyone visiting until it fixes key problems.

Chris

Monday 22nd of January 2024

@Harry, exactly, Only Thailand is sane in an increasingly insane world. Thailand has reduced taxes on alcohol, cannabis is legal, extended nightlife hours to 4 AM, they are also planning to extend tourist visas to 90 days. Thailand has better infrastructure, the condo rental is insanely cheap than Bali.

There is no beating Thailand in tourism game. They have mastered it. Bali will struggle in coming years

Mick

Saturday 20th of January 2024

Clean the tip you call a beach and control your Balinese hoons. Then start hassling the tourists. There's lots of competition worldwide for the lowly working man's tourist dollar. Not many millionaires eating at the small warungs and getting massages in side street spas.

Jen

Saturday 20th of January 2024

Um, he's not saying the tax shouldn't worry tourists. He's saying a whole lot of word salad /absolutely nothing, and telling people to stop complaining so as not to draw attention to the issue. It's fake reassurance. If the parties involved hadn't filed the judicial review all he has said is businesses *may* get incentives (and still expect tourists to pay).

Wayan Bo

Saturday 20th of January 2024

Anyway the best things in life are tax & duty free.