Indonesian Ministry of Tourism Stirs Controversy with New 40% Entertainment Tax Surge Policy in Bali

Share:

The Ministry of Tourism and Creative Economy, led by Sandiaga Uno, has announced plans to implement a 40% to 75% increase in entertainment tax for Balinese entrepreneurs in 2024. This decision has sparked strong protests from various sectors, including hotels and spas, who argue that the hike is excessively high and poses a significant burden.

Sandiaga Uno addressed the issues’s concerns, stating, “There was a negative response from business owner in the tourism and creative economy, especially in Bali, regarding the 40% increase in entertainment tax in Bali, including the spa industry,” during The Weekly Brief with Sandi in Jakarta on Wednesday (10/1/2024).

Despite the backlash, Sandiaga reassured that the new tax regulations would not cripple businesses in the tourism sector. The controversy surrounding the tax increase also drew the attention of Hotman Paris, a prominent Indonesian lawyer with extensive business interests in Bali.

 


Hotman Paris, a well-known Indonesian lawyer, expressed strong opposition to the proposed entertainment tax increase through a post on his official Instagram account (@hotmanparisofficial). He argued that there is no justification for the sudden tax hike, especially when comparing Indonesia’s policies to other tourist destinations like Thailand, where the approach is perceived as fundamentally different.

Hotman Paris raised concerns that implementing such a policy could significantly decline the number of foreign tourists visiting Indonesia. This comes at a time when Bali has recently been labelled as an ‘over-tourism city,’ attracting over 9 million foreign tourists in 2023.

The surge in tourist numbers, however, has not been met with adequate facilities and infrastructure. Bali has faced various challenges, including a high number of traffic accidents, road congestion, and a gradual increase in prices at tourist destinations, negatively impacting its tourism image.

Interested in this topic? Check out our other articles from Social Expat!

Related News

Nusa Penida Island in Bali is not only famous for its exotic and breathtaking landscapes, but it is also home to one of the most iconic and picturesque beaches in the world—Kelingking Beach. Recently, this stunning destination was included in TripAdvisor’s prestigious list of the 10 best beaches in the world, making it the second […]

The long holiday of Libur Lebaran is just around the corner, and for those staying in Indonesia, finding the perfect way to spend the break can be an exciting challenge. While many opt for a getaway to Bali or Yogyakarta, the vibrant music scene in Indonesia offers another enticing option—concerts. April 2025 is shaping up […]

During the Eid al-Fitr holiday in 2025, LRT Jabodebek is offering special ticket promotions with fares starting at IDR 5,000 and capping at IDR 10,000.  It is applicable from 28 March to 7 April 2025; moreover, throughout the Lebaran transportation period, which runs from 21 March to 11 April 2025. During this time, LRT Jabodebek […]

As is widely known, in 2025, Nyepi Day falls on Saturday, 29th March, coinciding with the holy month of Ramadan 1446 Hijri. This unique circumstance has raised specific concerns among Muslims in Bali regarding the observance of Tarawih prayers, which coincide with the Nyepi celebrations observed by Hindus. On this day, all individuals in Bali […]

Expat Property

Indonesia Visas

Expat Event

Business Networking
150,000
Paradise Lane
Social Networking
150,000
Dobu Restaurant & Bar
Business Networking
150,000
Fairfield by Marriott Bali Kuta Sunset Road

Indonesia Guide

Just For Fun

Write For Us

Exclusive Promotions

Event Gallery