Understanding Jakarta’s Billboard Tax Update: Who Still Gets Exemptions in 2025
As 2025 approaches, businesses across Jakarta are taking a closer look at the city’s new billboard tax regulations . Outdoor advertising—from massive LED screens to printed signage—has long been a steady income stream for local governments, but many companies are now asking which types of promotions will still qualify for exemptions . This update matters not only for marketing budgets but also for corporate compliance, especially for PT PMA entities managing multiple campaigns across Indonesia .
According to the Directorate General of Taxes, billboard or “reklame” taxes fall under regional revenue rules, yet national oversight ensures consistent valuation and fair implementation . The Ministry of Finance has clarified that digital billboards using rental space remain fully taxable, while in-house promotional signs may still receive partial exemptions when tied directly to product identification rather than advertising . Meanwhile, the Fiscal Policy Agency continues to coordinate with local governments to align these policies with national targets for non-tax revenue efficiency .
For example, a Canggu-based retail chain operating outlets in Jakarta recently adjusted its signage strategy after learning its indoor display walls no longer required billboard permits. By confirming classifications and maintaining proper documentation, they avoided extra charges and stayed compliant . Understanding the nuances of the Jakarta billboard tax update can help companies plan smarter marketing while keeping costs—and risks—under control.
Table of Contents
- Jakarta Billboard Tax 2025 Explained – Key Changes You Must Know
- How the Reklame Tax Update Impacts Digital and Static Ads
- Who Qualifies for Advertising Tax Exemptions in 2025
- PT PMA Compliance Tips for Billboard and Signage Rules
- Calculating Costs Under the New Jakarta Billboard Tax 2025
- Common Mistakes When Filing Reklame Tax Reports
- How to Apply for Advertising Tax Exemptions Effectively
- Real Story – How a Retail Chain Adapted to the Reklame Tax Update
- FAQs About Jakarta Billboard Tax 2025
Jakarta Billboard Tax 2025 Explained – Key Changes You Must Know
The Jakarta billboard tax 2025 is more than just an update—it’s part of a bigger effort to modernize city revenue collection. Previously, rules varied between districts, but now the system is becoming standardized across the capital. The new policy defines “reklame” more clearly, covering LED displays, banners, printed signs, and even video projections.
Businesses must register every billboard they own or rent, while digital screens will now be taxed based on duration and visibility, not just size. This means that dynamic video ads will cost more than static posters.
Another key change is transparency. The Directorate General of Taxes and the Jakarta Revenue Agency are syncing their data systems to reduce double billing. So, if your company manages multiple outlets, you’ll only pay the appropriate local tax, avoiding unnecessary overlaps.
The reklame tax update hits digital advertisers hardest. With more LED screens popping up in shopping centers and along Sudirman Street, regulators want fairer rates for high-visibility spots . These digital billboards, often rented by brands for weeks or months, are now classified as “premium reklame.”
Static ads—like printed banners inside stores or on private walls—still fall under regular taxation, but the city may grant partial exemptions for indoor or brand-identification displays. For example, a coffee shop with a wall sign showing its logo isn’t taxed the same as one renting an outdoor screen .
This update encourages businesses to think smarter about where and how they advertise. Using internal displays or co-branding with property owners can reduce costs, keeping promotions compliant without breaking marketing budgets .
Not every billboard is taxed equally in Jakarta. The 2025 framework introduces clearer advertising tax exemptions for certain cases. If your signage promotes your own registered brand within your property—like a nameboard above your store entrance—it may qualify as “product identification” rather than paid advertisement.
Government campaigns, public awareness messages, and cultural event banners may also enjoy temporary exemptions when approved by local authorities. However, all exemptions must be supported by official documentation, such as property ownership or business license records .
Foreign companies operating under a PT PMA structure can still claim these exemptions, provided they align with their Indonesian business license and aren’t using third-party ad space. The rule is simple: advertise what you own, not what you rent .
For PT PMA entities, keeping billboard records clean is essential for smooth tax audits. Always register each reklame with your local revenue office, specifying whether it’s internal or rented. Keep invoices, rental contracts, and screenshots of digital ads as evidence.
Many foreign-owned companies make the mistake of relying solely on their marketing vendors. But in 2025, both the advertiser and the space provider are accountable for accurate reporting. Make sure your vendor includes your Tax ID (NPWP) and company name in every reklame filing 💬.
It’s also smart to coordinate your finance and marketing teams so that advertising expenses are properly booked under deductible marketing costs. Doing this helps avoid confusion during annual income tax reporting .
Calculating billboard tax now depends on three factors: location, duration, and display type. Premium zones like SCBD or Thamrin have higher rates, while suburban areas cost less. Digital LED billboards are taxed daily based on display hours.
For example, if you rent a 10-square-meter digital screen in central Jakarta for one month, you’ll pay a base rate plus a percentage of your rental cost. Indoor, static ads on your own property, however, are either partially exempt or fully excluded under the advertising tax exemptions rule .
Businesses can estimate their total yearly reklame expenses by multiplying the total ad area, rate per zone, and time. Keeping this calculation clear helps budget smarter and avoid unexpected costs later .
Even big brands sometimes get reklame reports wrong. The most common mistake is mislabeling ads as “internal” when they’re actually on rented public space. This error can lead to back-taxes and penalties .
Another issue is failing to renew expired reklame permits. Jakarta’s online system now auto-flags outdated listings, which may trigger audits or fines if left unchecked. Companies should set reminders for permit renewals.
Incomplete documentation—like missing vendor invoices or unclear photos—can also block exemption requests. Always keep a digital archive of every billboard approval, especially if your business operates in multiple Jakarta districts.
To apply for advertising tax exemptions, first confirm whether your reklame meets the exemption criteria: company-owned space, brand identification only, or government-approved public campaigns .
Next, prepare supporting documents—business license (NIB), property certificate, and advertisement photos. Submit them through Jakarta’s e-reklame portal or directly at the city’s revenue office. Processing time usually takes one to two weeks.
If your ad qualifies, the office will issue a written exemption notice valid for the specified period. Keep that letter safe! Auditors may request it during tax inspections.
Following these steps ensures smooth exemption approval and keeps your Jakarta billboard tax 2025 filings accurate, transparent, and fully compliant .
Meet Daniel Fischer, a retail manager from Germany who runs a lifestyle store in Canggu and several outlets in Jakarta. In early 2025, his marketing team faced higher costs due to the reklame tax update.
Instead of cutting promotions, Daniel studied the new billboard classifications carefully. He learned that indoor displays and logo walls inside his stores were partially exempt, while his outdoor LED screen faced the full Jakarta billboard tax 2025 rate.
He reorganized his ad strategy—shifting more content indoors, redesigning window visuals, and using social media for outdoor-style reach. Within three months, his total advertising costs dropped by 30%.
Daniel’s experience shows that compliance can actually boost efficiency. By following advertising tax exemptions rules properly, he avoided penalties, saved money, and maintained brand visibility across Indonesia .
His lesson? Don’t fear tax updates—understand them. Smart adaptation is the real advantage.
Any public advertisement or display—digital, printed, or projected—used for promotion.
Most in-house promotional signs are partially exempt if they serve brand identification only.
No. All companies, local or foreign, follow the same reklame framework under local regulations.
Usually every year or per campaign period, depending on location and display type.
Through Jakarta’s e-Reklame system or at your nearest regional revenue office.
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