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Bali Sets to Scrap Proposed Entertainment Tax to Attract Tourists

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By Jerry Walters - - 5 Mins Read
Female tourist explores attractions in Bali, Indonesia
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Bali recently decided to postpone the implementation of its entertainment tax following strong opposition from the country’s tourism sector.

Initially, the government proposed a significant increase in the entertainment tax, but stakeholders expressed concerns over potential negative impacts on tourism revenue.

The Indonesian government has proposed a significant increase in the entertainment tax on services such as discos, karaoke, nightclubs, bars, steam baths, and spas, from 15% to 40% or 75%, which has been met with widespread opposition from various stakeholders.

Fearful of losing foreign tourists to more affordable destinations, Bali's tourism sector voiced concerns that this policy might jeopardize the island's revenue.

Minister for Tourism and Creative Economies Sandiaga Uno has allayed fears raised by industry leaders and Bali tourists regarding the newly proposed 40% entertainment tax.

Despite the concerns of prominent figures in the entertainment industry, Minister Uno reassures them that the tax increase will not harm the entertainment and tourism industries.

"I'm worried that if we continue to escalate this, tourists will eventually see that there is a situation that is not conducive in Indonesia. Moreover, we are in the spotlight now that we have managed to recover," the Minister said in a meeting with Journalists.

Additionally, he emphasizes that the government remains committed to attracting 14–15 million tourists by 2024.

The decision to impose a 40% entertainment tax has stirred significant backlash and prompted entrepreneurs within the Indonesian entertainment industry to initiate a judicial review at the Constitutional Court (MK).

While the full impact of the tax hike remains uncertain, Minister Uno expresses optimism and fosters a more positive outlook towards attracting tourists to Indonesia.

Considerations Beyond Tourism

Minister Uno's reassurance highlights the need for a comprehensive evaluation of the effects that excessive increases in entertainment taxes could have on the Indonesian populace.

While tourists may choose alternative destinations with more reasonable entertainment taxes, it is important to recognize that the heaviest burden of this tax hike would fall upon low and middle-income earners in Indonesia.

Bali is famous for its stunning beaches, each with its distinct appeal. Visitors can opt for dramatic black sand beaches in the west or immaculate white sands in the south.


Ulun Danu Beratan Temple, Danau Beratan, Candikuning, Kabupaten de Tabanan, Bali, Indonésie
The Ulun Danu Beratan Temple in Bali | Guillaume Marques


For those seeking tranquility, secluded coves in Uluwatu or untouched shorelines in Pemuteran in the north are perfect retreats.

While Bali may offer limited hiking trails, there are ample opportunities for those seeking adventurous explorations.

Trekking to the summit of Mount Agung, the tallest volcano in Bali, or wandering through dense jungles, verdant mountainsides, and the renowned Campuhan Ridge Walk in Ubud provide unforgettable experiences.

After receiving feedback from the tourism industry, Bali's government has decided to delay the proposed increase in entertainment tax.

Minister Uno has reassured that this decision was made to maintain a positive outlook for the entertainment and tourism industries.

Nevertheless, visitors can continue to indulge in Bali's many fun activities, including exploring its breathtaking beaches, taking adventurous hikes, and discovering hidden waterfalls throughout the island.