entertainment

Sports Games Subject To Entertainment Tax, Leading To Controversy, Government Insensitive To Crisis

The Jakarta Provincial Government's (Pemprov) decision to expand the list of objects subject to Certain Goods and Services Tax (PBJT) for arts and entertainment services has become controversial, as the policy targets various popular sports, including padel. 

The Jakarta Provincial Government has officially implemented a 10 percent PBJT tax on various sports popular among urban communities, such as padel, billiards, pilates, mini soccer, tennis, and rock climbing. This policy is stipulated in Decree of the Head of the Jakarta Regional Revenue Agency (Bapenda) Number 257 of 2025. 

In addition to padel, other types of sports subject to a 10 percent tax include fitness centers, including yoga, pilates, and zumba; futsal, soccer, and mini soccer courts; tennis courts; swimming pools; badminton courts; basketball courts; volleyball courts; table tennis courts; squash courts; archery courts; baseball and softball courts; shooting ranges; bowling alleys; billiards halls; rock climbing gyms; ice skating rinks; horse riding facilities; boxing or martial arts gyms; and other recreational facilities. Athletics or running venues; and jet skis. 

The tax rate is levied on transaction values ??such as rental fees, bookings, entrance tickets, or other service packages. According to the Jakarta Regional Revenue Agency (Bapenda), the basis for this policy is because many sports facilities are now considered to have shifted from fitness activities to paid recreation. 

This measure has received negative reactions from middle-class residents who use paid facilities for exercise. Furthermore, concerns have arisen from business owners whose businesses are involved in these types of sports. 

Hindering a Healthy Lifestyle 

Jakarta residents have begun to express their objections to the Jakarta Provincial Government's policy. They argue that the government is actually hindering the healthy lifestyle that is now gaining popularity through the implementation of this tax. 

One of those who expressed their objection to this policy is Padel Nyok, a padel community in Jakarta. They believe that excessively high taxes could hinder the development of padel, which has recently become popular. In fact, the government should support this activity. 

"If the tax is too high, I'm afraid it will hinder the growth of both players and the community itself. This growing sport in Indonesia should be supported, not taxed," said a Padel Nyok representative. 

According to Padel Nyok, padel is a sport, not entertainment. Therefore, it should not be subject to entertainment tax. 

Tag: Bapenda PBJT Pemprov