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Major hotels: Many hotels services are inclusive of 21% tax. 10% is a mandatory government tax, the other 11% is a legally unenforceable service charge. Tipping is not mandatory. However, if you want to tip, perhaps provide 5-10% of the total bill.
Restaurants: some restaurants will include 5-10% service charge to their bill. But if they don't levy any service charge, you can tip between Rp10,000 to 10% of the total bill. A 10% Government mandated restaurant tax is applicable, but smaller restaurants and certainly warungs will not be levying that and would likely never pay it to the government if they did.
Taxi drivers: tipping is not mandatory. Although all taxis are metered, some drivers do not carry either coins or small notes, or may not be able to locate them when required. Many passengers round up thier bill. For example if your taxi meter shows Rp27,750. You might round up to Rp30,000.
Car-hire drivers: It is not mandatory; however if service is satisfactory a basic Rp 20,000 tip is deemed appropriate. (Full day Car-hire drivers generally expect a larger tip.)
Petrol currently costs Rp6.500 per Litre - September 2013 - common Government subsidized rate.
Airport porters : You don't have to use them, but for very little money they can be a big help especially going through customs and it makes a difference to them. It range from Rp. 20.000 - Rp. 50.0000 for 1-2 travellers. it is advisable to agree rate in advance to avoid arguments afterwards.
Service industries: although it is not mandatory to give tip for services such as hair salons and body massage, tipping for service industries are common and expected in Indonesia. Most Indonesians give tip to their hairdresser or massaeur after they completed the service. 5-10% from the bills are appropriate.
In Bali the base salary is quite low and that is why everything might appear relatively cheap to many visitors. Workers seek tips to provide extra income. In Bali, in small hotels and restaurants tips are generally shared. However, if you really don't have the money to tip, most Indonesians will understand it. Try to be understanding concerning the low pay rates, this also applies to those of you travelling on a budget. Having said that, if you run short of cash and don't tip or if you forget to bring cash for attendants, it is unlikely anybody will get upset or be nasty toward you.
Many hotels and some restaurants might charge 21% on top of the bill - the formal 10% Government Tax for Hotels and Restaurants is added on, and then a service charge may be added to it. Check your bill for this, and if it has been added, no further tip is required (unless you want to).
In Indonesia there is no VAT (GST) payable on restaurant and hotel bills for either goods or services, only the 10% Hotel and Restaurant tax is applicable.