‘Nothing left’: Indonesia’s tourism industry fears wipeout under tax hike

Jakarta, Indonesia –  After spa therapist Murniyati survived COVID-19 on a sparse salary, she thought the worst was over.

But after the Indonesian government’s announcement of a steep rise in taxes on entertainment services, she fears the salon where she works could be forced to close, leaving her unemployed.

“My husband is just a taxi driver so our combined income is low. Our life, my life, depends on him and me,” she told Al Jazeera.

Murniyati is just one of the countless workers across Indonesia who could be affected by the plans to apply a 40-75 percent tax rate to entertainment services such as spas, bars, nightclubs and karaoke joints.

The proposed hike has sparked a fierce backlash from businesses, including a court challenge by spa owners in Bali.

Hariyadi Sukamdani, the chairman of the Indonesian Hotel and Restaurant Association, said in a press conference last month that the changes would lead to job losses in an “industry that absorbs a significant amount of…