Indonesian entertainment industry hammered by new tax law

by Nick on May 15, 2006

by Nick | May 15th, 2006

The geniuses who make laws in Indonesia, have come up with another great one. As Bali Discovery reports, the maximum allowable tax on certain entertainment businesses has been raised from 35% to 75% !!!!

You’ve got to feel for any successful entertainment business. With the costs of start up, research and development, promotions, staffing, transportation, venue, equipment etc. etc. You manage to make a profit…and the government wants 75%. I come from the UK, a country run by morons who have never owned a business, and think market economics is for capitalists. Well market economics exist whether you like it or not. Take a look at Bali right now. Spaghetti Jazz in Seminyak just closed after a few years in operation. A business can take only so much beating, and isn’t just a cow to be milked.

If he Indonesian government is going to leave no stone unturned, in its efforts to promote Bali / Indonesia as a prime tourist location, and help to make the Kuta Karnival ‘THE EVENT’ in SE Asia, then maybe. But don’t hit people up in a down market. That just doesn’t make sense.

{ 5 comments }

Cokorda Raka Angga Jananuraga May 16, 2006 at 5:38 am
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F**K the gobierno.
Let’s make a list of stupid laws passed by this wahhabic government:
first porno stuff, now entertainment stuff…. they’re tring to make life in indonesia like in Saudi Arabia I guess.

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freddi May 16, 2006 at 1:00 pm
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I can’t believe it.. the government is ridiculous.

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Bob May 16, 2006 at 5:55 pm
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Dont forget the visa on arrival @ US$25 a head for a maximum of 30 days and then you must leave Indonesia. Lets just say that it is not helping Bali. If some one had a brain that functioned, they would realise, you could make more $$$$ by not forcing the tourists to leave after 30 days.
If I was dictator for life, I would charge the visa on arrival, then after 30 days, it could be renewed for US$XX. This could be repeated X number of times before you had to leave the country. Surely that would be a win win situation for all concerned.

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nicole June 7, 2007 at 10:09 pm
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hey what is the arrival visa $US if you are staying 14 days ?

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Sebastian June 9, 2007 at 4:59 am
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You still trying to make sense of Indonesian politics Nick? Oh my god.Save yourself the headache.

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