Proposed Tax Hike on Indonesian Spas and Entertainment Sparks Backlash Over Potential Business Closures and Job Losses

Indonesia proposed a 40-75% tax hike on entertainment venues like spas, bars, and karaoke joints, sparking backlash from businesses who say it could force closures and job losses
Spa manager Sofie Sulaiman said the tax hike could make it impossible for her business catering to teachers and housewives to turn a profit
The tax hike aims to boost revenue for local governments, but some officials in tourism hotspots worry it will reduce visitors and hurt businesses already damaged by COVID-19
Economist Bhima Yudhistira said the lack of consultation left businesses unsure of relief measures, and well-connected companies may get incentives unavailable to others
Spa workers like Murniyati, who survived COVID-19, could lose their jobs and livelihoods if entertainment venues are forced to close by the tax hike