Starting in 2025, sports facilities in Jakarta, including padel courts, gyms, swimming pools, and other recreation venues, will officially be subject to a 10% entertainment tax.
This policy is outlined in the Jakarta Regional Revenue Agency Decree No. 257 of 2025, which categorizes the rental of these facilities as entertainment services.
This regulation is not limited to padel, which has been gaining popularity in the capital, but also applies to a wide range of sports venues that charge entrance fees or rental costs.
Facilities such as tennis courts, futsal arenas, archery ranges, squash courts, and even fitness centers are now included in the tax scope if they offer paid access to the public.
A strategic partner of the Directorate General of Taxes, the entertainment tax rate is set at 10% of the transaction value. This includes rental fees, booking charges, entrance tickets, and bundled service packages.
While the tax burden ultimately falls on consumers, the administrative responsibility for collecting and reporting the tax lies entirely with facility operators.
Operators must set prices inclusive of the 10% tax component, collect the tax from customers, and deposit the proceeds regularly into the regional treasury of the Jakarta Provincial Government.
The Head of the Jakarta Regional Revenue Agency, Lusiana Herawati, signed the decree on May 20, 2025. The regulation takes immediate effect.
“This Head of Agency Decision shall be effective as of the date of enactment,” the decree states.
Officials explain that the policy aims to respond to shifting trends in sports and recreation. Activities once considered purely fitness-related have transformed into commercial entertainment services with significant economic potential.
Andri M. Rijal, Head of the Data and Information Revenue Public Relations Unit at Jakarta Regional Revenue Agency said the adjustment reflects how sports have evolved in society.
“This provision was issued to align with the development of sports or entertainment activities in the community that fall under regional tax objects,” Andri stated on Wednesday (June 2, 2025), as quoted by Bisnis.
Transactions subject to the 10% entertainment tax include:
• Rental of courts, fields, or arenas
• Sale of entrance tickets
• Booking fees processed through digital platforms or apps
Full List of Taxed Sports and Fitness Venues:
1. Fitness centers, including yoga, pilates, and zumba studios
2. Futsal, soccer, and mini soccer fields
3. Tennis courts
4. Swimming pools
5. Badminton courts
6. Basketball courts
7. Volleyball courts
8. Table tennis facilities
9. Squash courts
10. Archery ranges
11. Baseball and softball fields
12. Shooting ranges
13. Bowling alleys
14. Billiard halls
15. Climbing gyms
16. Ice skating rinks
17. Equestrian facilities
18. Martial arts gyms
19. Athletic tracks
20. Jetski rentals
21. Padel courts
The Jakarta government views this measure as a way to strengthen fiscal fairness and improve business oversight. With sports increasingly marketed as paid leisure experiences, the new tax is expected to generate additional regional revenue while promoting transparency in the recreation industry.
Source: CNBC Indonesia, Bisnis
Special Photo Credit: justpadel.ae
