Coordinating Minister for Economic Affairs Airlangga Hartarto affirmed that the government will not rush to scrap tax holiday, despite Indonesia's implementation of the global minimum tax (GMT).
Airlangga said tax incentive policies would continue to be adjusted to meet national investment needs and reflect developments in other countries' policies. He noted that countries had not yet implemented the GMT evenly, so tax incentives remained a tool to attract investment.
"Regarding the GMT, not all countries have implemented it," Airlangga said at the Ministry of Finance complex on Wednesday, October 21, 2026.
He cited Canada as an example, noting that the country continued to provide special tax facilities with rates below the applicable tax provisions. Airlangga made this remark in reference to his experience at the 2026 Canada Investment Summit.
Airlangga said the government needed to consider the dynamics of international investment competition before determining the direction of domestic tax incentive policies.
“We will therefore continue to implement policies based on our needs, as various ASEAN countries also offer incentives, including in taxation," he said.
Meanwhile, the Audit Board (Badan Pemeriksa Keuangan/BPK) has raised concerns about granting corporate tax holidays to companies that had already commenced commercial operations before receiving the incentives. The findings highlight concerns over the targeting and effectiveness of the tax facilities as part of the implementation of investment incentive policies.
In the Summary of Audit Reports of First Semester (Ikhtisar Hasil Pemeriksaan Semester/IHPS I) 2026, the Audit Board reported issues with granting tax holiday and tax allowance to two businesses that had begun commercial operation before receiving the facilities. The findings highlighted the need for incentives to comply with tax policy requirements.
According to the Directorate General of Taxes' (DJP) audited 2025 fiscal year financial statements, the number of taxpayers applying for tax holiday increased from 19 in 2023 to 62 in 2024 before declining to 53 the following year.
A similar trend was observed for tax allowances, with the number of applicants falling by 50% from 30 taxpayers in 2024 to 15 compared to the previous year. Meanwhile, the total value of tax holiday utilization increased from IDR 7.06 trillion in 2023 to IDR 7.26 trillion in 2024, even though the number of recipients decreased from 42 to 36 taxpayers.
Also Read:
Global Minimum Tax: Don’t Wait Until Year-End
DGT Records 5,581 Taxpayers Under Global Minimum Tax Scheme
GMT and the Shifting Paradigm of Tax Incentives
Writer: Fiorentina Renata Trixie | Editor: Thomas Rizal
