Jakarta Taxes Your Workout -- Unless You Play Golf

Muhammad Firman
July 4, 2025 | 12:42 pm

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This aerial photo shows a golf course in Jakarta, Monday, April 2, 2018. (Antara Photo/Wahyu Putro)

Jakarta. If you enjoy hitting the court for a friendly game of tennis or shooting hoops with friends in Jakarta, expect to pay a little extra this year. The Jakarta Provincial Government has officially imposed a 10 percent entertainment tax on 21 types of paid sports activities -- including tennis, badminton, basketball, and padel -- as part of a broader effort to regulate leisure-based services that have evolved into high-value lifestyle offerings.

The new tax applies to venues that charge entry or rental fees, and covers a range of transactions: from court rentals and booking fees to entry tickets and bundled service packages offered by operators.

The city argues that many of these activities, once strictly about health and fitness, have now shifted into the realm of urban recreation and commercial entertainment, especially in affluent circles.

But what’s noticeably missing from the list? Golf -- a sport long associated with exclusivity and private clubs -- is exempt from the Jakarta entertainment tax.

Why Golf Is Untouched
Golf’s exemption is not without reason. Unlike other leisure sports taxed by local governments, golf falls under the national Value Added Tax (VAT), regulated by Indonesia’s central government. This categorization stems from Finance Ministry Regulation No. 70/2022, which defines golf as a commercial service, not a form of entertainment.

In fact, a 2011 Constitutional Court ruling further clarified that golf is not legally considered an “entertainment activity,” putting to rest earlier debates when golfers were subject to both national VAT and regional entertainment taxes -- a dual burden that was ultimately deemed unfair.

The Rise of Padel -- and Why It’s Taxed
Among the newly taxed activities is padel, a fast-rising racket sport that blends elements of tennis and squash. The government notes that padel’s growing popularity among Jakarta’s urban elites -- and its premium-priced venues -- has moved it beyond the realm of pure sport into the territory of paid entertainment.

As a result, padel joins a diverse list of sports venues now subject to the new tax, signaling a shift in how Jakarta sees the intersection of fitness, fun, and financial value.

Full List of Sports Affected by Jakarta’s Entertainment Tax: