Gripping the Racket, Paying Taxes: A New Era of Padel Business

Padel: An Emerging Trend in Racket Sports

In recent years, padel has witnessed an extraordinary surge in popularity, particularly within urban landscapes. Although it may superficially resemble tennis, the sport is distinguished by fundamental differences: the racket lacks strings, and the court is enclosed by walls. These unique features render padel exceptionally accessible, even for novices, thereby accelerating its diffusion across a wide range of age groups. Responding to this growing enthusiasm, fitness centers and sports complexes have increasingly incorporated padel courts as a fresh attraction. Beyond its role as a recreational pastime, the rise of padel signifies not only lucrative business opportunities but also the maturation of a rapidly expanding sports industry.

Padel and Local Tax

The growing popularity of padel has also drawn the attention of local authorities. According to the Decree of the Head of the Jakarta Regional Revenue Agency (Bapenda) No. 257 of 2025, the padel business has been officially classified as a taxable object under the Entertainment category of the Specific Goods and Services Tax (PBJT), with a rate of 10%. In practice, this means that operators are required to add the tax to rental fees, collect it from consumers, and remit it to the regional treasury. This framework places padel on equal footing with other commercial sports such as futsal, badminton, and swimming. Consequently, the sport receives no preferential treatment simply because it is currently enjoying a surge in popularity.