Tourism Law Provides Incentives for Creative Services

Commission VII of the House of Representatives (Dewan Perwakilan Rakyat– “ DPR ”) and the government have agreed to pass the revision of Law No. 10 of 2009 on Tourism (“ Law 10/2009 ”) into law at the upcoming DPR Plenary Session. Through this regulation, the government will provide incentives to tourism business actors as well as creative service providers.

“The Government and Regional Governments may provide Tourism Business incentives to business actors, including both fiscal and non-fiscal incentives,” states Article 17A of the Draft Bill on Tourism (“ Tourism Draft Bill ”).

Based on the Tourism Draft Bill received by Hukumonline, Article 17A states that tourism business actors will receive both fiscal and non-fiscal incentives. The government is currently expanding the incentives for Article 21 Income Tax (Pajak Penghasilan– “ PPh ”) which is Borne by the Government (Ditanggung Pemerintah– “ DTP ”) to the tourism sector.

Incentives are also provided to creative service providers. Chapter VIF, Article 17Z states that creative activities are needed as tourist attractions to support tourism development.

Organizers of creative activities must be oriented towards quality and sustainable tourism. “The Government and Regional Governments may provide incentives to creative service providers to support the implementation of regular and sustainable creative activities,” states Article 17AA.