Sandiaga Asks Entrepreneurs To 'Make Peace' With Entertainment Taxes: In Order To Achieve Indonesia Gold 2045

Menparekraf Sandiaga Uno (doc. Kemenparekraf).

JAKARTA - Minister of Tourism and Creative Economy (Menparekraf), Sandiaga Salahuddin Uno, emphasized the importance of tax reform, including the entertainment tax because it will have a positive impact on supporting the vision of Indonesia Emas 2045.

Sandiaga invites business actors in Indonesia to remain wise in responding to tax regulations in the country, which in essence will greatly support Indonesia to achieve the vision of becoming a developed country in 2045.

"The entertainment tax aspect actually has a philosophical basis to strengthen the tax reform aspect and in order to achieve Indonesia's gold 2045," Sandiaga said in his official statement, quoted Friday, February 9, 2024.

He explained that the Government had issued a Circular (SE) of the Minister of Home Affairs (Mendagri) regarding the application of entertainment taxes so as not to burden the business world.

The Circular in question is SE Number 900.1.13.1/403/SJ dated January 19, 2024, to the Regional Governor of DKI Jakarta and the regent/mayor.

Terkait Undang-Undang (UU) Nomor 1 Tahun 2022 tentang Hubungan Keuangan antara Pemerintah Pusat dan Pemerintahan Daerah (HKPD) sendiri berlaku per Januari 2024.

"The discussion on the HKPD Law at that time was not carried out comprehensively because we are still focused on handling Covid-19. However, at the time of the National Coordination Meeting of the Ministry of Tourism and Creative Economy at the end of 2022, several associations have discussed the potential for a very burdensome increase in taxes in the tourism sector which has just risen from the pandemic," he said.

For your information, on Friday, January 26, 2024, Coordinating Minister for Economic Affairs, Airlangga Hartarto, said entertainment entrepreneurs could get incentives that could prevent them from paying taxes of 40-75 percent.

Then, the Government also prepares fiscal incentives for the Agency Income Tax (PPh) for entertainment service providers.

For the tourism sector, the Government will provide a tax reduction in the form of providing government-borne facilities (DTP) of 10 percent of the corporate income tax so that the amount of corporate income tax of 22 percent will be 12 percent.