Jakarta Cuts Taxes for Hotels and Restaurants Ahead of City Anniversary

Big Breaks for Jakarta Hotels and Restaurants

In celebration of Jakarta’s 498th anniversary, the Jakarta provincial government has rolled out substantial tax incentives aimed at revitalizing its hospitality and culinary sectors.

Starting mid-June 2025, hotels in Jakarta will receive a 50% discount on the Pajak Barang dan Jasa Tertentu (PBJT), or Specific Goods and Services Tax, for the first two months. This will be followed by a 20% discount for the two months after.

Restaurants, cafes, and other culinary businesses will enjoy a 20% PBJT discount during the same four-month period.

A Capital Gift for Jakarta’s Anniversary

Jakarta’s Governor Pramono Anung emphasized the goal of these policies is to assist local businesses still recovering from the pandemic.

“We want to ease their burden, especially those in the hotel and culinary sectors who have been struggling,” he said during the policy announcement.
“This isn’t just about tax relief, it’s about restoring economic confidence and keeping Jakarta vibrant.”

Deputy Governor Rano Karno added:

“This is our birthday gift to the people of Jakarta and to the businesses that have stood strong through challenging times.”

By lowering operating costs for these businesses, the government hopes to increase hotel occupancy rates and attract more customers to Jakarta’s food and beverage scene.

Bonus Relief: No Penalty on Vehicle Tax

In addition to supporting the hospitality industry, the government is also offering a penalty waiver on motor vehicle taxes. From June 14 to August 31, 2025, residents will not be charged administrative fines for:

  • PKB (Motor Vehicle Tax)
  • BBNKB (Vehicle Ownership Transfer Tax)

This move is intended as a goodwill gesture ahead of the city’s birthday and Indonesia’s Independence Day.

When Will the Jakarta Discounts Start?

Although the announcement was made on June 17, officials indicated that the new tax policy will take effect within the same week—likely June 18 or 19, 2025. The vehicle tax amnesty began earlier on June 14.

As Jakarta moves toward its milestone 500th anniversary, these incentives mark a celebratory push. They aim to stimulate spending, support local businesses, and offer residents some financial breathing room. Other regions across Indonesia may take notes from this effort as they seek ways to boost their own local economies.

 

Sources: detik, pajak.com, antara. Featured Image

 

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