Jakarta, The PRAKARSA – Policy research and advocacy institute, The PRAKARSA in response to the DKI Jakarta Provincial Government's policy of imposing a 10% tariff on a number of sports facilities. The DKI Jakarta Provincial Government has officially designated 21 types of sports facilities as objects of the Certain Goods and Services Tax (PBJT) in the arts and entertainment services category. This policy is stated in the Decree of the DKI Jakarta Provincial Revenue Agency Number 257 of 2025. The policy mentions 21 sports facilities, namely tennis, futsal, badminton, basketball, athletics, padel, etc. This policy has attracted public attention because it has the potential to become a disincentive to sports activities that have significant benefits for public health.
Economic and fiscal policy researcher The PRAKARSAEma Kurnia Aminnisa believes this policy could be an additional burden on the middle class, as many of them engage in the sports activities outlined in the policy. "Unlike golf, which is associated with the upper class, sports like futsal, badminton, and swimming are generally enjoyed by the middle class."
Ema also mentioned that several developed countries offer tax incentives to encourage their citizens to be physically active. "Countries like Canada have implemented the Children's Fitness Tax Credit, which allows parents to receive a tax deduction for the costs of their children's sports activities. The UK has implemented the Cycle to Work scheme, which exempts employees from purchasing bicycles for tax purposes," Ema added.
In line with that, Roby Rushandie, an economist at The PRAKARSA, said that this type of fiscal policy often burdens the middle class, a group that has traditionally been the backbone of the economy and relatively compliant with taxes. "The government often uses the middle class as a shortcut to boost tax revenue, even though they themselves are facing a growing financial burden," Roby said.
Roby also suggested that the Jakarta Provincial Government explore potential regional tax revenue sources that could reduce negative externalities and offer significant potential, such as parking taxes. "Most of the 21 sports facilities are commonly used by people from various backgrounds. The Jakarta Provincial Government should consider other tax sources, such as parking taxes, which have significant potential and align with the provincial government's efforts to promote the use of public transportation."
Roby also added that the sports tax should be earmarked, allowing for the development of sports facilities and public open spaces. "The sports tax should be earmarked, meaning the revenue is used specifically, for example, to improve and expand public open spaces so that Jakarta residents can exercise comfortably and affordably," he concluded.