Taxing the Playing Field: Revenue Potential, Constraints, and Optimization of Recreational Sports Taxation in South Tangerang

Dhian Adhetiya Safitra (Polytechnic of State Finance STAN, Indonesia)
Soni Wijayanto (Directorate General of Taxes, Indonesia)

Indonesian Journal of Taxation and Accounting
Vol 4, No 2 (2026): June 2026

Purpose – This study analyzes the implementation of the Specific Goods and Services Tax (PBJT) on recreational sports in South Tangerang City following the enactment of Law No. 1 of 2022 on Central–Regional Government Fiscal Relations (HKPD Law). As a service-oriented municipality with a rapidly growing commercial sports sector, South Tangerang presents a critical case for evaluating local tax reform. It examines the revenue potential, implementation constraints, and optimization strategies adopted by the Regional Revenue Agency (Bapenda). Methods – The study employs a qualitative descriptive approach following SRQR guidelines, combining regulatory analysis, participant observation during a ten-week field placement at Bapenda South Tangerang (November 2025–February 2026), and secondary data analysis of taxpayer registration and revenue figures for the 2022–2025 period. Findings – PBJT on recreational sports has broadened the local tax base, contributing 21.8% of newly registered entertainment-tax taxpayers in 2024–2025. Revenue from arts and entertainment services grew 46.71% in 2024, the first year of PBJT implementation. However, constraints persist including low taxpayer awareness and regulatory ambiguity. To address these, Bapenda has implemented four optimization strategies: digitalization of tax reporting, intensive social media monitoring for taxpayer discovery, inter-agency data coordination, and direct field socialization. Research implications – While existing literature on the HKPD Law focuses on macro-fiscal decentralization, this study addresses the empirical gap regarding the micro-level administrative challenges of taxing specific new consumption sectors. The findings describe implementation patterns rather than causal effects. Originality – This article offers one of the first empirical accounts of PBJT implementation on recreational sports at the municipal level, combining revenue data with a qualitative assessment of administrative constraints and optimization efforts under the newly enacted HKPD Law.