Jakarta. The Jakarta provincial government has officially introduced tax relief measures for businesses in the hospitality and food service sectors, offering discounts of between 20 and 50 percent in a bid to sustain economic growth and protect jobs in the capital.

Governor Pramono Anung announced the policy, signed into law on August 25, saying it was designed to strike a balance between local revenue collection and maintaining a supportive business climate.

“I signed this gubernatorial decree to ensure the continuity of hotel and restaurant businesses, while also supporting Jakarta’s economic growth,” Pramono said in a statement on Tuesday.

The program provides phased tax incentives:

• 50 percent discount on specific goods and services taxes for hotel businesses, valid through September 2025.
• 20 percent discount on specific goods and services taxes for hotel businesses, effective from October to December 2025.
• 20 percent discount on food and beverage taxes, valid from August to December 2025.

Eligible taxpayers must submit a statement agreeing to report all transactions electronically through Jakarta’s established tax reporting system.

Pramono added that the policy will be evaluated before year-end to determine whether the incentive should be extended until January 31, 2026.

The governor noted that Jakarta enjoys high tax compliance rates, which have supported economic growth of 14 percent, well above the national average.

“Because tax payments are running smoothly, I am granting this incentive as both appreciation and a way to keep the business climate healthy. This decision was made after careful calculation,” he said.

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