Jakarta, Sept. 23 -- Authorities of Jakarta, the capital city of Indonesia, has announced a temporary tax reduction policy for the hotel and restaurant sector to provide financial support amid rising costs and slowing consumer demand.

Under the new regulation, hotels will receive a 50% tax reduction from late August to September, followed by a 20% reduction from October to December. Restaurants will benefit from a 20% tax cut during the same periods. To qualify, hotels must commit to submitting electronic transaction data via the city's E-TRAPT system, ensuring transparency and accountability.

Jakarta Governor Pramono Anung said the policy was carefully calculated, serving both as recognition and as a strategic measure. Revenue from hot...