Ministers Sent to Face Angry Businessmen on Entertainment Tax Lawsuit

Tax cut

The Indonesian government is gearing up to face legal challenges from business owners regarding the entertainment tax stipulated in Law No. 1/2022 on Financial Relations between the Central Government and Regional Governments (Law on Financial Relations/HKPD Law). Tourism and Creative Economy Minister Sandiaga Uno said he would confront these legal proceedings along with Finance Minister Sri Mulyani and Law and Human Rights Minister Yasonna Laoly.

According to Sandiaga, President Joko Widodo has delegated several ministers to resolve this matter. "There's already a power of attorney from the president to three ministries to address the lawsuit in the Constitutional Court," he said on Feb 7. While awaiting the legal process, Sandiaga encourages local governments to provide appropriate incentives to entrepreneurs affected by the entertainment tax changes. "Some regions, such as Bali and Labuan Bajo, have already made adjustments," he added.

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