Jakarta (VNA) – Authorities of Jakarta, the capital city of Indonesia, has announced a temporary tax reduction policy for the hotel and restaurant sector to provide financial support amid rising costs and slowing consumer demand.
Under the new regulation, hotels will receive a 50% tax reduction from late August to September, followed by a 20% reduction from October to December. Restaurants will benefit from a 20% tax cut during the same periods. To qualify, hotels must commit to submitting electronic transaction data via the city’s E-TRAPT system, ensuring transparency and accountability.
Jakarta Governor Pramono Anung said the policy was carefully calculated, serving both as recognition and as a strategic measure. Revenue from hotels and restaurants in Jakarta is already 14–15% above the national average. This tax relief helps businesses maintain operations and grow, he noted.
The policy will remain in effect until the end of the year, with potential extension into January 2026.
The hotel association welcomed the tax relief, noting that it helps stabilise operations, maintain service quality, and protect jobs amid rising costs and lower occupancy.
Officials also highlighted its positive impact on cash flow, allowing hotels to offer promotions and enhanced services while preserving profit margins. While not solving all challenges, the policy is seen as a strong signal of government support, boosting confidence in the sector./.
