Sports Are Subjected To A Polemic Entertainment Tax, The Government Is Not Sensitive To Crisis

JAKARTA The DKI Jakarta Provincial Government's (Pemprov) Decree expands the list of Specific Goods and Services Tax Objects (PBJT) for the category of arts and entertainment services into polemics, because the policy targets various types of popular sports, including padel.

The DKI Jakarta Provincial Government has officially imposed PBJT at a rate of 10 percent for various popular sports among urban communities such as padel, billiards, pilates, mini Soccer, tennis, and rock climbing. The policy is stated in the Decree of the Head of the Jakarta Regional Revenue Agency (Bapenda) Number 257 of 2025.

In addition to padel, other types of sports that are taxed 10 percent are fitness centers, including yoga venues, pilates, zumba; futsal courts, football, mini Soccer; tennis courts; badminton field swimming pools; basketball court; volleyball court; table tennis court; prayer court; archery field; baseball field, softball; shooting range; Whereby; billiards; rock climbing place; ice skating place; equestrian place; boxing or martial arts; athletic or run; and jetski.

Tax rates are imposed on transaction values such as rental fees, bookings, entry tickets, or other service packages. According to Bapenda Jakarta, the basis for this policy is because many sports facilities are now considered to have shifted their function from fitness activities to paid recreation.

This step received a negative reaction from the middle class who did use paid facilities to exercise. In addition, there are also concerns from business actors who have business lines in these types of sports.

The people of Jakarta have begun to express their objections regarding the policy of the DKI Jakarta Provincial Government. The government is said to have actually hindered the healthy lifestyle that is now starting to be loved by the public, through the implementation of the tax.

One of those who expressed objections to this policy was Pedel Nyok, one of the padel communities in Jakarta. They assess that too high taxes can hinder the development of padel which has been on the rise recently. In fact, the government should support these activities.

"If taxes are too high, the fear is that it will hinder the growth of players and the community itself. The growing sport in Indonesia should be supported, not even subject to taxes," said a representative of Padel Nyok.

According to Padel Nyok, padel is a sports activity, not entertainment. Therefore, padel should not be subject to entertainment taxes.

"Yes, you can only give a suggestion if the padel is included in the sports category, not entertainment," he said.

Chairman of the Jakarta Hotel and Restaurant Entrepreneurs Association (PHRI) Sutrisno Iwantono warned the Jakarta Provincial Government to mitigate the impact of policies on the health tourism business or wellness tourism.

"If it's part of health and tourism, we want to offerwellnes as an alternative. If you tax it, it will be less attractive than tourism. And this must be distinguished between luxury entertainment and health for ordinary people," he said.

Despite the protests, economist from the Center of Economic and Law Studies (Celios) Nailul Huda said that the regional decision to apply taxes for certain types of sports is not new.

This sports tax, said Huda, had actually been implemented for a long time, but it was not felt because it was charged to the price paid by consumers.

"Then, now it's just crowded because one of them is a sport that is on the rise and indeed the condition of our society is not doing well," Huda told VOI.

"That's why there were protests, and the public was surprised that they had paid this sports tax and entered the price we paid," he said.

Huda emphasized that the government should be fair in determining taxes, including taxes related to entertainment or sports. When one is taxed, similar economic activities should also be taxed.

However, he also reminded, in its implementation, fiscal policies like this must still pay attention to the principle of justice or in other words, tariffs or tax coverage do not cause burden to the community.

"But the government (central and/or regional) should also have a sense of crisis against the condition of the community. This means that the community's economy is currently decreasing, do not add additional burdens when the economy is sluggish," he explained.

Furthermore, Huda assessed that this policy was encouraged because of the reduced revenue from Regional Original Revenue (PAD) due to the absence of incentives at hotels organized by the central government which carried out efficiency.

"There is no existence) it will definitely hit enough in DKI Jakarta PAD. Yes, to close the hole, a new source of acceptance is needed," said Huda.