ANALYSIS OF ENTERTAINMENT TAX AS ONE OF

MAIN SOURCE OF LOCAL INCOME OF MALANG

CITY
AS A STRUCTURED TASK FOR FINAL EXAMINATION

RYELA RIA PRISANDI (135010107111028)

FACULTY OF LAW
BRAWIJAYA UNIVERSITY

ABSTRACT
Indonesia's national development aims to create a society that is fair
and prosperous Indonesia through the improvement of the standard of living,
intelligence, and welfare of all people. In order to realize the goal of national
development, the implementation of development should be evenly distributed
throughout Indonesia and is inseparable from the existence of regional
development in whic is a very important part of national development. In order
to facilitate national development it is necessary to use a fund from which state
revenue from the Regional Tax Collection. Local Tax Collection is the
embodiment of devotion and the role of taxpayers to directly and jointly
implement tax obligations required for the financing of the State and National
Development. Regional Tax Withholding Tax can be implemented in PAD that
is a source of regional revenue consisting of local taxes, local levies, local
wealth are separated, and others. Hotel tax, restaurant tax, and amusement
tax is a component of Regional Tax to increase the revenue potential for the
area to carry out the functions and obligations as mentioned above. The
purpose of this paper is made to analyze the contribution of amusement tax as
a source of regional revenue of city of Malang.
Keywords; Amusement Tax, Regional Revenue, Contribution of Amusement
Tax, City of Malang

CHAPTER I
BACKGROUND
State of Indonesia is one country that upholds the rights and obligations
of each person based on Pancasila and the 1945 Constitution, therefore, the
State puts a tax as one embodiment of the obligations of state in the national
mutual assistance which is community participation in national development
financing. Indonesian National Development aims to create a society that is fair
and prosperous Indonesia through the improvement of the standard of living,
intelligence, and welfare of all the people of Indonesia in order to realize the
goal of national development, the implementation of development should be
evenly distributed throughout the country and it can not be separated from the
regional development which is a very important part of the national
development equitably and overall. In order to facilitate national development it
is necessary to use a fund from which state revenue from the Regional Tax
Collection. Local Tax Collection is a form of devotion and the role of taxpayers
to directly and jointly implement the necessary tax obligations for financing the
State and National Development.
Regional authorities manage national resources available in the region
and is responsible for maintaining the environment in accordance with the
legislation. Governmental authority delegated to the regions in the framework
of decentralization must be accompanied by the delivery and transfer of
financing, infrastructure, and human resources in accordance with the authority
given to the area. The local government has the authority to conduct voting on
certain taxes (taxing power), undertake certain efforts to get some money in
order to finance recurrent expenditures and development expenditures, making
local regulations required in organizing the regional administration and the right
to obtain number of funds in the form of transfers from the central government.

The higher strength of taxation, the higher the proportion of the total budget
revenue. Besides, the region becomes more autonomous.1
Sources of financing comes from the PAD decentralization, equalization
funds, lending areas, and other legitimate acceptance. PAD is a source of
regional financial sources excavated from within the regions concerned
consisting of local tax revenue, results retribution, results of separated areas of
wealth management, and other PAD legitimate. One of the financial resources
that can be optimized excavation area is PAD (Sobandi, 2005: 26).
PAD is an area of themselves that potential revenues are in the area
and managed by the relevant local governments. Law No. 32 of 2000 explain
the source of local revenue consists of PAD, which is the result of local taxes,
levies, separated regional wealth management, and other legitimate PAD. PAD
is derived from financial resources as mentioned, should always be sought in
order to continue to increase from year to year in accordance with the
development of regional development.
Local taxes, as a component of revenue, the taxes imposed by the local
government to the people who inhabit its jurisdiction, without directly obtaining
contra granted by local governments raise taxes it pays. Levies, other
components that also includes components of PAD, the reception received by
the local government after providing certain services to the population
inhabiting jurisdiction. A clear distinction between local taxes and levies lies in
contra provided by the local government. If the contra local tax is not given
directly, then the levies contributions given directly by the regional government
to residents who pay the levy.2

1 Abdul Halim. 2001. Bunga Rampai Manajemen Keuangan Daerah.

Yogyakarta: UPP AMP YKPN. Hal. 20
2 Abdul Halim. Op Cit. Hal. 30

Entertainment tax is a tax on the organization of entertainment.

Moreover, Entertainment Tax can also be interpreted as a levy on the
organization of the entertainment area. In the Entertainment Tax collection
contained some of the terminology you need to know. Terminology include:
1. Entertainment are all kinds of shows, games, arcade games, and over
the crowd with any name and form, which ditontotn or enjoyed by any
person with a free of charge, excluding the use of facilities for exercise.
2. The organizers of entertainment is a private person or entity acting on
its own either for or entity acting on its behalf either for themselves or
for and on behalf of other parties who become dependents in
organizing an entertainment.
3. The audience or visitor is every person attending an entertainment to
see and or hear or enjoy it or using the facilities provided by the
organizers of entertainment, except providers, employees, artists (the
players), and the officer who attended to perform supervisory duties.
4. Payment is the amount received or should have received in any form
for the price of replacement or should be the taxpayer in exchange for
the use and or purchase entertainment services and supporting
facilities including also all additional to whatever name is also carried
out by the taxpayer directly related to the organization of the
entertainment. Included in the definition of payment is the amount
received or should have received, including those that will be received,
among other payments made not in cash.
5. The entrance sign is a sign Atua all legitimate tools or methods by
name and dalamm AAPA form that could be used to watch, use of
facilities, or enjoy the entertainment. Mark or device or legitimate
means is in the form of admission that dilegalsasi by the Department of
Revenue District / City. Including admission here is a sign of entry in the
form and by whatever name, eg ticket, invitation ticket, subscription
card, membership card (membership), and the like.

6. The price of admission, hereinafter referred to as HTM, is paid the

value of the money that is listed on the entrance sign to be paid by
spectators or visitors.
Mentioned in PERDA No. 16 Year 2010 Article 22 that:
1. The object of amusement tax is a service organization of entertainment
2.

with free of charge.

Entertainment is referred to in paragraph (1) are:
a. watch a movie;
b. art performances, music, dance, and / or clothing;
c. beauty contest, bodybuilding, and the like;
d. exhibitions;
e. discos, karaoke bars, nightclubs, and the like;
f. circus, acrobatics, and magic;
g. game of billiards, golf, and bowling;
h. horse racing, motor vehicles, and arcade games;
i. massage parlors, reflexology, steam bath / spa, and a fitness center
(fitness center); and
j. sporting events.

Mentioned in PERDA No. 16 Year 2010 Article 23 that

1. Subject amusement tax is a private person or agency that enjoy
entertainment.
2. Taxpayers entertainment is a private person or agency that organizes
entertainment.
Mentioned in PERDA No. 16 Year 2010 Article 24 that:
1. Entertainment Tax basis is the amount of money received or that
should have been received by the organizers Entertainment
2. The amount of money that should be accepted as described in
paragraph (1), including rebates and free tickets are given to the
recipient of entertainment services.
Mentioned in PERDA No. 16 Year 2010 Article 25 that:

1.

Entertainment Tax Rates as referred to in Article 22 paragraph (2),

fixed as following:
a. spectacle films:
- Local by 10% (ten percent);
- International by 20% (twenty percent).
b. art performances, music, dance, and / or clothing by 15%
(fifteen percent);
c. beauty contest, bodybuilding, and the like by 15% (fifteen
percent);
d. exhibition amounted to 15% (fifteen percent);
e. discos, nightclubs, bars, and the like by 35% (thirty five
f.
g.
h.
i.
j.
k.
l.
m.

percent);
karaoke by 20% (twenty percent);
circus, acrobatics, and magic by 15% (fifteen percent);
billyar by 15% (fifteen percent);
golf at 25% (twenty five percent);
Bolling by 15% (fifteen percent);
horse racing, motor vehicle, recreation and games
dexterity 15% (fifteen percent);
massage parlors, reflexology, steam bath / spa, and a fitness
center (fitness center), and the like by 25% (twenty five

percent);
n. sporting events by 15% (fifteen percent);
o. entertainment folklore / traditional 5% (five percent).

CHAPTER II
DISCUSSION
In line with the implementation of regional autonomy, every region in
Indonesia are required to always seek to increase revenue sources. Increased
revenue will be achieved when the sources that influence increased, so that

these resources increases, in the management and implementation of the area

to be optimal. One source that can increase revenue is local taxes. If the local
tax collection can be implemented optimally then PAD can be increased. In
connection with the enactment of Law No. 28 Year 2009 on Regional Taxes
and Levies PDRD hereinafter referred to as the Law on September 15, 2009,
then there are guidelines regarding the conduct of polling and the type of tax to
be paid by society in the region. The Law on Regional Tax and Retribution as a
complement and rules set out in the local regulation both at the provincial and
district / city. Several types of local taxes levied by the regions, particularly for
counties and cities, namely: (1) Taxes; (2) Tax Restaurant; (3) Tax
Entertainment; (4) Advertisement Tax; (5) street lighting tax; (6) Tax Non
Metallic Minerals and Rocks; (7) Parking Tax; (8) Tax Groundwater; (9) Tax
swallow's nests; (10) Tax on Land and Building Rural and Urban (PBB P2); and
(11) Tax on Acquisition of Land and Building (BPHTB).
The larger the PAD composition, the greater the ability of the region to
assume greater responsibility. However, the smaller the composition of PAD to
the reception area, the dependence on the center are also getting bigger.
While the perceived impact the community with the increased acceptance of
PAD is the smooth development. This development covers various sectors
including construction of roads, construction of public facilities and other
facilities.3
Effectiveness is defined as an ability to realize a plan or target, that
means how well a unit or institution to realize the planned target. If the results
show that the greater percentage can be said that the more effective
management of user charges. And vice versa, the smaller the percentage of
levy management result increasingly ineffective. While that efficiency is a
measure of how much to charge for each input and output. When measuring
the efficiency will be known how much the costs incurred to achieve certain
results. Some ways to increase the output and efficiency are the same input or
3 Mardiasmo. 2009. Perpajakan. Yogyakarta: Andi. Hal. 45

output with a large proportion of the increase in the proportional input or also
with a large proportional and lower output proportionally.
Effect of local tax in this local revenue (PAD) with the entertainment tax
is the functional relationship, because PAD is a function of the entertainment
tax. With increasing entertainment tax will increase government revenue for the
construction of development programs, will further encourage the improvement
of public services which are expected to increase the productivity of the people
who eventually could boost economic growth back.
The effectiveness of the achievement of the entertainment tax which is
necessary in the achievement of various aspects of mutual support in the
process of taxation based on analysis and testing, it can be concluded that the
linear regression model generated suited to see the effect of the entertainment
tax on revenue, sedanglan level contribution rate is a way to measure how
large donations / amusement tax benefits to regional revenue. The higher the
contribution rate, the greater the tax benefit given to PAD. To calculate the
contribution to the entertainment tax revenue is the realization to compare
entertainment tax with revenue realization.
For the city of Malang, a local tax from 2006 until 2013 continued to
increase from year to year, in 2007 the local tax has increased by 17.00%
growth from the realization of local taxes in 2006 amounted to Rp
32,123,673,031.21. In 2008 growth slowed to 3.3% to 13.70%. While the 2009
growth (2.07) of 15.77% with the realization of Rp 49,467,066,282.96. In 2010
there was an increase of 4.6% from 17% to 21.60%. Increased sharply in the
year 2011 was 108.36%. However, in 2012 decreased by 81.4% from 108.36%
to 26.96%. Then increased in 2013 in the amount of 49.88%. Total realization
PAD Malang from year 2006-2013 amounted to 1.182 trillion rupiah. It is not in
spite of the additional contributions from the entertainment tax on growth as
well considering the number of tourist attractions and entertainment in the city
of Malang.

According to Halim (2004: 163) in Darono (2012: 4), contribution of the

entertainment tax in the city of Malang in 2006-2013 can be measured by the
formula:
the realization of tax revenues entertainment x100%
the realization of local revenue
The highest contribution to the entertainment remains to PAD is equal to 1.87%
in 2008. For the lowest contribution amounting to 1.09% in 2011. There are five
(four) years were the result of contributions were above average in 2007, 2008,
2009 2010 and 2013 in the amount of 1.50%, 1.87%, 1.83%, 1.50% and
1.66%. Then for the highest contribution to the entertainment insidenstil PAD is
equal to 0.95% in 2006. And the lowest contribution in the amount of 0.12%
was in 2009. The average contribution entertainment incidental namely 0.29%.
In 2006 and 2010 the results of its contribution is above average ie 0.95% and
0.30%. Average fixed entertainment and incidental entertainment show results
much less contribute to the PAD, because it is below 10%. (Source: Arsip
Dispenda Kota Malang)
For the effectiveness of the entertainment tax revenues are presented in the
following table:

Percentage
Year

Target (Rp.)
1.575.000.000,0

Realization (Rp.)
1.380.141.329,0

(%)

2006

0
1.580.000.000,0

0
1.724.554.425,0

87,63

2007
2008

0
1.752.930.000,0

0
1.778.167.000,5

109,15
101,44

0
1.787.988.600,0

0
1.792.499.083,7

2009

0
1.807.988.600,0

0
2.041.298.212,0

100,25

2010

0
1.897.988.600,0

5
2.359.059.325,8

112,90

2011

0
1.972.989.350,0

0
3.134.172.824,6

124,29

2013

0
3.451.736.261,1

0
4.083.522.176,7

158,25

2014

0
Average

118,20
114,10

Source: Arsip Dispenda Kota Malang

Based on the table above the effectiveness of the entertainment tax, the
percentage rate of effectiveness can be seen from 2006 until 2013 the results
are very effective, but in 2006 the result is effective because of below 100%.
The highest percentage was in 2012 and the lowest percentage in 2006.

CHAPTER III

CONCLUSION
Effect of local tax in this local revenue (PAD) with the entertainment tax
is the functional relationship, because PAD is a function of the entertainment
tax. With increasing entertainment tax will increase government revenue for the
construction of development programs, will further encourage the improvement
of public services which are expected to increase the productivity of the people
who eventually could boost economic growth back.
For the city of Malang, a local tax from 2006 until 2013 continued to
increase from year to year, in 2007 the local tax has increased by 17.00%
growth from the realization of local taxes in 2006 amounted to Rp
32,123,673,031.21. In 2008 growth slowed to 3.3% to 13.70%. While the 2009
growth (2.07) of 15.77% with the realization of Rp 49,467,066,282.96. In 2010
there was an increase of 4.6% from 17% to 21.60%. Increased sharply in the
year 2011 was 108.36%. However, in 2012 decreased by 81.4% from 108.36%
to 26.96%. Then increased in 2013 in the amount of 49.88%. Total realization
PAD Malang from year 2006-2013 amounted to 1.182 trillion rupiah. It is not in
spite of the additional contributions from the entertainment tax on growth as
well considering the number of tourist attractions and entertainment in the city
of Malang.
The highest contribution to the entertainment remains to PAD is equal
to 1.87% in 2008. For the lowest contribution amounting to 1.09% in 2011.
There are five (four) years were the result of contributions were above average
in 2007, 2008, 2009 2010 and 2013 in the amount of 1.50%, 1.87%, 1.83%,
1.50% and 1.66%. Then for the highest contribution to the entertainment
insidenstil PAD is equal to 0.95% in 2006. And the lowest contribution in the
amount of 0.12% was in 2009. The average contribution entertainment
incidental namely 0.29%. In 2006 and 2010 the results of its contribution is
above average ie 0.95% and 0.30%. Average fixed entertainment and
incidental entertainment show results much less contribute to the PAD,
because it is below 10%.

The larger the PAD composition, the greater the ability of the region to
assume greater responsibility. However, the smaller the composition of PAD to
the reception area, the dependence on the center are also getting bigger.
While the perceived impact the community with the increased acceptance of
PAD is the smooth development. This development covers various sectors
including construction of roads, construction of public facilities and other
facilities.

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