The Jakarta Provincial Administration is granting temporary tax discounts for businesses in the hotel and restaurant sector, effective from Monday, August 25, 2025, until the end of the year, in a bid to stimulate economic growth.
Governor Pramono Anung announced the policy providing reductions ranging from 20 to 50 percent. “Today, I signed the decree to ensure business continuity for taxpayers in the hospitality sector while supporting Jakarta’s economic growth,” Pramono said at City Hall on Monday.
According to Pramono, the tax relief will be applied under three schemes, First, 50 percent discount on specific goods and services taxes for hotel services, valid from Aug. 25 to September 2025. Second, 20 percent discount on the same tax for hotel services from October to December 2025. Then, 20 percent discount on food and beverage taxes from August to December 2025.
Eligible taxpayers must submit a declaration of commitment to report transaction data electronically through the e-TRAP system, which is already in use among Jakarta businesses.
Pramono added that the policy will be reviewed as a basis for possible extension until January 31, 2026.
The governor stressed that the incentive serves as both support and appreciation for compliant taxpayers. “These businesses have contributed around 14–15 percent to Jakarta’s economic growth, higher than the national average. This is our way of maintaining a healthy business climate,” he said.
The local government expects the policy to help businesses endure economic challenges and maintain competitiveness.
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