Research

Indonesia: More Tax On Your Nightlife

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Algo Research Team

Industry | Jan 21, 2024 | Views: 200

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Key Summary:

  • New incremental tax policy puts burden on a niche lifestyle
  • Potential affect on employment needs to be addressed
  • Alcohol & Entertainment stock performances are down

The government has announced a new incremental tax policy relating to alcohol and entertainment industries. The impact would be felt mostly to middle and high income segment, although the middle-income would feel more squeeze on their purchasing power. It is harder to maintain some nightlife/lifestyle for Gen-Z and millennials as well who regularly consume these goods and services.


The new policy states that alcohol taxes are around 10-29% higher than before starting in 2024, depending on the production (local or import) and class (alcohol content). Meanwhile, higher taxes on clubs/bars (nightlife) with a minimum of 40% to maximum 75% (from 25-35%); to be imposed at the discretion of each regional government, but note that taxes for arts and entertainment generally are down from a maximum 35% to 10%.

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