West Bandung Offers Local Tax Fine Amnesty, PHRI Urges Ongoing Support

The Indonesian Hotel and Restaurant Association (PHRI) has responded to the West Bandung Regency government’s introduction of an amnesty, or abolition of administrative sanctions, on local taxes. The waiver also applies to the tourism sector, such as hospitality and entertainment services, which fall under the category of specific goods and services tax (PBJT). The programme to abolish administrative sanctions on local taxes, presented as a gift to the public in celebration of the regency’s 19th anniversary, runs from 9 June to 31 August 2026 and is intended to encourage taxpayer compliance while boosting locally generated revenue (PAD). Through this tax penalty amnesty programme, the public only needs to pay the principal tax without being charged fines, interest, or surcharges. “If the government has such a programme (fine amnesty), we appreciate it; it means the government is paying attention to the public and business owners. So abolishing fines is very helpful,” said Eko Suprianto, Chairman of PHRI West Bandung Regency, when contacted on Thursday (18/6/2026). However, according to Eko, this abolition of local tax administrative penalties must be followed by ongoing guidance to understand the actual condition of taxpayers in the tourism business sector. He noted that, generally, the tourism business sector, particularly in the Lembang area, is currently sluggish. He cited the hospitality sector as an example, where the occupancy rate from January to May this year has declined compared to the same period last year. The same applies to entertainment and food and beverage establishments (restaurants and cafes). “Generally, I see the market as sluggish; the Lembang area overall is experiencing a downturn. Even the traffic is quiet, not like it used to be. For hospitality, there has been a decline of approximately 7 percent; last year from January to May it was 48 percent, now it is 41 percent for accommodation alone,” Eko revealed. This situation, Eko said, will impact locally generated revenue (PAD) from local taxes in the tourism sector in West Bandung Regency. This is because tax payments, especially for hospitality, are based on self-assessment and depend on the turnover generated. “It will certainly impact taxes. At my establishment as a taxpayer, there has been a decrease in tax payments because occupancy has fallen. There must be guidance and support from the government,” Eko concluded.