Limited-Time Tax Incentive for Jakarta’s Hospitality Industry

If you are planning to travel to Jakarta—or if you own, or plan to own, a hotel business in the city—this is good news for you. Starting 25 August 2025, the Provincial Government of DKI Jakarta is giving tax discounts for hotels and restaurants under Governor’s Decree No. 722 of 2025.

The hospitality sector plays a central role in Jakarta’s economy, contributing around 14-15% of the city’s growth, which is higher than the national average. With this policy, the government aims to help businesses stay resilient while also supporting continued economic growth.

What's In It for Hotels and Restaurants?

• 50% discount on hotel service tax from August to September 2025.

• 20% discount on hotel service tax from October to December 2025.

• 20% discount on food and beverage tax from August to December 2025.

To benefit, businesses simply need to submit a declaration letter and record transactions through E-TRAPT system, Jakarta’s electronic transaction reporting platform.

This initiative was said to be part of the regional government’s broader effort to stimulate economic growth. By easing the tax burden, the policy is expected to encourage real-time business activity and create job opportunities across Jakarta’s service and tourism industries. For hotels and restaurants, these incentives can make a real difference. Savings can be used to manage operating costs, improve guest services, invest in staff training, or upgrade facilities. Restaurants and hotel outlets can also use the incentives to attract more diners and events, helping Jakarta’s lifestyle scene thrive.

Our Insight

For hospitality players, this is more than just short-term relief. It’s an opportunity to strengthen your business model, enhance customer experience, and prepare for long-term growth. As the government puts more focus on digital tax reporting, hotels and restaurants that adapt quickly will be better positioned to grow and compete in Jakarta’s evolving hospitality market.

Read the full governor's decree here.

DISCLAIMER:

This material is prepared for general information purposes only. It is not intended to give legal or any other professional advice, opinion or recommendation and, accordingly, it should not be relied upon. Specific legal advice should be sought before taking any action based on the contents in this material. Please contact us if you need any assistance regarding this matter.