Coordinating Minister for Economic Affairs Airlangga Hartarto said the tax incentive for writers would remain in effect indefinitely. The policy is part of the government’s economic policy package to be launched in the second half of 2026.
The government is preparing to cut the income tax (PPh) rate on writers’ royalties from 15% to 1.5%.
“It will remain in effect,” Airlangga said at the Coordinating Ministry for Economic Affairs on Friday (21/8/2026).
However, the incentive cannot yet be implemented because the implementing regulation, in the form of a Finance Ministry Regulation (PMK), has not been issued. Airlangga said the policy would take effect once the regulation is signed.
Previously, Airlangga explained that the final income tax facility could be utilized by taxpayers working as writers who have books with an International Standard Book Number (ISBN).
Creative Economy Minister Teuku Riefky Harsya also previously said the government had agreed to cut the tax rate on writers’ royalties from 15% to 1.5%. However, the implementing regulation is still being drafted in coordination with the Finance Ministry.
Currently, income earned by writers from royalties is subject to Article 23 income tax, which is non-final. Under Directorate General of Taxes Regulation PER-1/PJ/2023, Article 23 income tax on royalties is calculated at 15% of 40% of the gross royalty amount.
The tax withheld serves as a tax credit that can be offset against the income tax payable for the relevant tax year.
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