SPA business based on Law No. 1 of 2022 concerning Financial Relations between the Central Government and Regional Governments (HKPD) is classified as entertainment. According to the General Chairperson of ASTI (Association of Indonesian SPA Therapists) Dr. Mohammad Asyhadi, SE, MPD, this is the wrong room. SPA is an activity that is more related to health, not entertainment. Because of that, they submitted a judicial review or material test. SPA's target is to get out of entertainment and enter the realm of health. When it comes to taxes, they want reasonable ones, not high taxes that threaten business.
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According to Mohammad Asyhadi, SPA is a term that comes from Latin, Solus Per Aqua, which means treatment or care with water. Meanwhile, in the ancient Indonesian medicinal treasures, there is actually a similar term, although in different practices, namely husada tirta, which means health through water.
Evidence of this husada tirta is in the reliefs of the Borobudur temple, then continued by several palaces in the archipelago. "In the Borobudur temple, artifacts regarding treatment with water or husada tirta already exist. There is Taman Sari owned by the Yogyakarta Hadiningrat Palace, and in Bali, there is Tirta Empul. So, health efforts with water have been around for a long time," he explained.
In the current era, SPA has mushroomed into a lucrative business area. According to Mohammad Asyhadi, before the pandemic, business growth was around 13 to 20 percent per year. However, during the COVID-19 pandemic, the SPA business came to a standstill. "From our original 3,500 members, there are only 300 left for the whole of Indonesia. "Thank God, after the situation turned down, this SPA business is slowly picking up," he said.
When the SPA business was on the rise, what was surprising was the application of taxes of between 40 and 75 percent based on Law No. 1 of 2022 concerning Financial Relations between the Central Government and Regional Governments. When this regulation is implemented, said the man who is usually called Didik, SPA businesses will slowly go out of business. Because entrepreneurs are not strong enough to pay such a high tax burden.
Currently, as an organization, the step taken by ASTI, said Mohammad Asyhadi, is to submit a material test regarding the grouping of SPA businesses in the entertainment realm. They oppose this and ask that this business be included in the health realm. When this material test is granted, the tax amount will also adjust. “Where does the story come from that SPA enters the realm of entertainment? This is what we do every day in an effort to be healthy, not entertaining. "Our reference is Minister of Health Regulation No. 8 of 2014 concerning SPA Health Services," he emphasized to Edy Suherli, Bambang Eros, and Irfan Medianto in a special interview at the VOI office recently. Here's the excerpt.
According to ASTI Chairman Mohammad Asyhadi, implementing a tax of 40 percent is very unfriendly to the business world. If it continues to be forced, the SPA business could go bankrupt. (Photo: Bambang Eros, DI Raga Granada VOI)
Not long ago we emerged from the COVID-19 pandemic, in general, what is the condition of the SPA business in Indonesia after escaping the pandemic?
Before the pandemic, the SPA business was growing very well, around 13 to 20 percent per year. As soon as there was a pandemic, we lay down. Because the Ministry of Health issued instructions not to operate yet. From our original 3,500 members, there are only 300 left for the whole of Indonesia. Thank God, after the situation turned down, this SPA business slowly recovered. In Bali alone, there are no less than 3,000 entrepreneurs who are involved in this business. So now he is in recovery, I see from the data that the recovery rate has reached 80-90 percent.
We have learned a lot from the pandemic that SPA is needed. What we do is a resilience process, namely strengthening a healthy system. If health workers are disease, that is healing disease from diagnosis.
Just about to get up, it turns out there was a stir about a 40-75 percent tax increase, why is there such a fuss now?
After Law No. 1 of 2022 concerning Financial Relations between the Central Government and Regional Governments has been completed and ratified, we have prepared a judicial review or material test. However, entrepreneurs are still calm because Regional Regulations (Perda) as an extension of the Law do not yet exist. Since Bali issued a regional regulation in early January 2024, business people have been surprised because the tax has been set at 40 percent. Regional entrepreneurs then coordinated with us to go to the Constitutional Court (MK) to conduct a judicial review of this law. So if you say our reaction was sudden, that's not true. On January 3, our lawsuit was accepted by the Constitutional Court, and on January 5 it was declared complete.
Since 2009 SPA has been drawn into the realm of entertainment, and we have asked the DPR RI to straighten out this matter. Law No. 10 of 2009 in Article 14 emphasizes that SPA stands alone and does not involve entertainment. There is another Law No. 29 of 2009 concerning Tourism that regulates SPA, the tax ranges from 0-70 percent. So each region has different policies, some have 10 percent, and some have more, but the SPA business can still run. But in Law No. 1 of 2022, the tax for the entertainment industry, including SPA, is set at 40-75 percent. Everyone is shocked.
Then friends move?
We were struck by lightning. Because it concerns our rice pot, everything moves. We at ASTI Center are supported by many Bali SPA Bersatu friends to submit a judicial review for Law No. 1 of 2022.
In Minister of Health Regulation No. 8 of 2014, it is stated that there are two categories of SPA, wellness SPA and medical SPA. For medical SPA that handles doctor friends and other health workers. Meanwhile, wellness SPAs are those who are trained to work in this field. We are trying to ensure that in the future these SPA workers are recognized as traditional Chinese medicine experts.
So, your struggle is not just about taxes?
Yes, apart from the tax issue, we want to get out of the realm of entertainment. SPA is the realm of health. We are optimistic that this struggle will be successful because SPA has a long history. Since the time of our ancestors, they have taught us how to maintain holistic health. In the era of Tourism Minister Marzuki Usman, they already considered that the profession of SPA therapist would be much needed. At that time we received support to join the International SPA Association.
For the material test, what article is the focus on?
What we are proposing is articles 55 paragraph 1 and 58 paragraph 2. So in Article 55 regarding the classification of SPA as belonging to the entertainment industry, we ask that it be revoked. And article 58 paragraph 2. If SPA has entered the realm of health, then the tax has been set at a maximum of 10 percent.
This means that previously the rules regarding SPA business taxes were different for each region, now with Law No. 1 of 2022 they are uniform. The amount is 40 to 75 percent. For Jakarta in the era of Pak Sutiyoso and Fauzi Bowo, the SPA tax was 10 percent.
By increasing taxes this time, the government is promising a fiscal subsidy for entrepreneurs, is this comparable to taxes not increasing as high as they are now?
We would like to thank the Ministry of Tourism, Ministry of Home Affairs, and Ministry of Finance for providing a positive response to what we voiced. But allow us to also submit a judicial review so that in the future we can obtain certainty in the law. The thing is, our demands are not grandiose, we want this SPA business to leave the realm of entertainment. So it falls into the health category. And secondly, the tax rate is also adjusted.
Why do you insist on being moved from entertainment to health?
The problem is that this hurts the hearts of friends who have dedicated themselves all this time. The problem is that we are not trying to entertain, but trying to be healthy. It's a very different perspective. Our ancestors taught us the balance of body, soul, and soul. We apply that in SPA, and it has nothing to do with entertainment. That's what makes us surprised. In the Borobudur temple and other relics, there are already artifacts regarding this SPA or husada tirta. That is the history of husada tirta or healing through water. In Latin, it is called SPA or Salus Per Aqua.
This 40 to 75 percent tax increase is borne by consumers, not entrepreneurs, so what is the worry?
For the SPA business, there is a premium, middle and low. Even though consumers pay the tax, it still has an impact on the SPA business. The problem is that the cost ratio doesn't work if there are tax items that high. Our costs include many items, not just paying the 40 percent tax. When totaled all the ends will be negative. If this is allowed to drag on, the SPA business could go bankrupt. Moreover, currently, this business is just starting to revive after the pandemic.
If you compare with neighboring countries in the same field, how much is their tax?
Please check in Thailand, previously their entertainment industry tax was 10 percent, then it was reduced to 5 percent. Well, in our country it is raised very high. In Singapore and Malaysia, I think it is not much different, around 10 percent. I want to ask the drafters of Law No. 1 of 2022, where did their academic studies came from, how come they found the tax rate of 40 to 75 percent? This must be explained.
What is the most real threat if this tax regulation is implemented?
Slowly the SPA business will go out of business. You won't be able to afford to pay such high taxes.
Actually, the SPA sector cannot be replaced by robots or machines, it is labor intensive, and it should be of concern to the government, what is your response?
Yes, that's the fact. The SPA has treatment from the nose through smell, and aroma therapy. Then from the eyes, there is color therapy. Then music therapy, with music and the sound of water. Then touch healing, through hands and water. And also from food and drinks, SPA cuisine. Our food and drinks must be kept in balance. We have the potential to develop this because it is relatively safe from threats from information technology and artificial intelligence. The problem is that the touch of a human hand will not be replaced by machines, robots, and so on. When some types of work are replaced, in the SPA industry they will not be replaced. This is the strength of this industry that everyone should know.
Mohammad Asyhadi studied SPA all the way to Yugoslavia
ASTI Chairman Mohammad Asyhadi did not expect his career in the SPA industry to progress as far as it has now. (Photo: Bambang Eros, DI Raga Granada VOI)
Initially, Mohammad Asyhadi did not understand what he would be doing when he chose to study physiotherapy. It turns out that he went far into the SPA business. He studied SPA all the way to Yugoslavia. Now that country has disbanded, but he gained a lot of knowledge from training in the country on the Balkan peninsula.
It turns out that when choosing a college major, Didik, as he is usually called, did not really understand what he would study. "When I entered the Diploma III Department of Medical Rehab (Physiotherapy) at Airlangga University Surabaya, I didn't know what I would study. But thank God I was able to finish college," said the man who was born in Ponorogo, East Java, on 17 August 1964.
While in the process of becoming a civil servant candidate at the Pasuruan District Hospital, he was tempted by a vacancy for a physiotherapist to study in Yugoslavia which was spread through a capital magazine. "I was interested in this opportunity, and I gave up the opportunity to become a CPNS," he recalled.
Long story short, Didik was accepted and in 1991 he went to Yugoslavia to study SPA in that country. "But education is not yet finished. The Yugoslav state disbanded. The war broke out and I had to return to Indonesia," said Didik, who was stationed in Serbia during training. "Even though I didn't finish it, I learned a lot about SPA from there," he added.
Returning to Indonesia Didik together with (the late) Ama Sumarma founded Ciater SPA and Resort in West Java. “At that time no entrepreneurs were opening SPA. It turns out that SPA is developing in Indonesia. Many have set up this business," explained Didik, who then joined the International SPA Association.
Working in the world of Medical SPA combined with tourism makes Didik comfortable and his career continues to grow. For 10 years he worked at Ciater SPA and Resort. Then he moved to Mustika Ratu and also took care of SPA.
Local Wisdom
What makes Mohammad Mohammad Asyhadi enjoy working in the world of SPA is that this field explores and develops the nation's cultural riches. “I am interested because SPA is a good business. This also maintains and develops local wisdom that has been practiced by our ancestors for a long time," he said. He also completed studies at the Bachelor of State Economic Management of LAN RI, at the Master of Education STKIP Siliwangi Bandung, and a Doctoral degree at UPI Bandung.
According to Didik, this SPA business has good prospects in the future because the government is also promoting medical tourism. "Moreover, the government is promoting the tourism sector in the medical sector. This SPA and wellness can be an item and an attraction for tourists, both domestic and foreign tourists," said the man who completed his Bachelor's degree in ITSK Physiotherapy, Dr. Soepraoen Malang.
He is concerned that the government's policy of implementing high taxes on the tourism and entertainment sector could backfire. "The problem is that this industry could go bankrupt if it is burdened with very high taxes. So this is not conducive to business. Even though the business prospects in the SPA sector are good," Didik, who has had a career in the SPA and resort business.
The advantages of Indonesian SPA therapists are very superior to SPA therapists from any country. “Our SPA therapists are friendly and this is something that therapists from other countries don't have. Because of this, the demand for SPA therapists is very high. Whatever the training institute produces is absorbed, even over demand," he said.
If the SPA problem cannot be resolved by the government, he is sure that Indonesian SPA therapists will move to work abroad. "They will move in droves if the government cannot solve this problem," stressed this lecturer at STIKES Dustira Cimahi.
Soul Calling
If the government cannot solve the SPA problem, which will cause the country's SPA industry to collapse, according to ASTI Chairman Mohammad Asyhadi, SPA therapists will work abroad. (Photo: Bambang Eros, DI Raga Granada VOI)
Because he has been involved in the country's SPA industry for so long, Didik feels called when the SPA business and industry is threatened as it is today. “This is a calling for me. "I, as the head of the organization and also a player in this industry, feel called to fight for business continuity and the fate of the many SPA therapists throughout Indonesia," said the Main Director of PT. Empat Visi Panca Harmonis.
He is grateful that what he has done so far has received support from his wife, who has a career as a TNI soldier. "I am grateful that my wife and children still receive attention even though I am busy with activities in the SPA business. "Moreover, with sophisticated communication technology, distance obstacles can be overcome," explained Didik, whose two children are now adults.
He hopes that the problems affecting the SPA industry can be resolved and overcome by the government. "I am sure that the struggle of me and my friends who want to raise this SPA issue through a material test can be successful," said a member of the 2018 - 2020 BSN (National Standardization Body) Formulator for Tourism Business.
One of Didik's healthy recipes is to maintain a healthy heart, lungs, joints and muscles. “You have to check everything so you can anticipate if something is weak or lacking. "And one thing to do is don't forget to be happy even when you are facing problems," concluded Mohammad Asyhadi.
"Even though consumers are the ones paying tax, it still has an impact on the SPA business. The problem is that the cost ratio doesn't add up if there are tax items that high. Our costs are many items, not just paying the 40 percent tax. When you add them all up, the result will be negative. If this is allowed to drag on, the SPA business could go bankrupt. Especially now that this business is just starting to revive after the pandemic,"
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
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