In a major change to the way recreational sports are taxed in the area, the city of Jakarta has formally imposed a 10% tax on padel court rentals. This action is covered by the Specific Goods and Services Tax (PBJT), which levies taxes on a range of sports and entertainment services in the capital.
On May 20, 2025, Lusiana Herawati, the head of DKI Jakarta’s Regional Revenue Agency (Bapenda), signed a decree formalizing the legislation. It adds padel courts to the list of taxable entertainment services, amending earlier tax recommendations. Although the service providers are still responsible for depositing the tax, the new regulation implies that customers renting padel courts will now have the tax included in their total rental payments.
The sport of padel, which has grown in popularity in Jakarta recently, is now included in the extensive list of leisure pursuits that are taxed at the same rate. These include yoga and pilates studios, soccer and futsal fields, tennis and badminton courts, swimming pools, and even archery, rock climbing, and martial arts facilities.
While padel and related services are subject to a 10% tax rate, nocturnal entertainment establishments like spas and karaoke clubs are subject to a 40% tax rate. Although the PBJT is intended to be paid by end users, the companies providing these services are in charge of collecting and reporting it.
Given how popular urban sports are among locals, this development is indicative of Jakarta’s larger plan to boost regional income through the leisure and lifestyle sectors. The new fee brings about administrative and financial changes for padel operators and players alike, which may have an impact on how the sport develops in the city.
