How the Middle East Conflict Affects Indonesia’s Economy
Tensions in the Middle East have flared up again. Relations between countries have heated up amid military attacks and are now affecting world trade routes passing through the Strait of Hormuz. Not only is it happening in the countries involved, but ...
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Revisiting the Indonesia-United States Tax Treaty
Following his visit to the United States in early February 2026, Indonesia’s President returned with a reciprocal agreement, the Agreement on Reciprocal Trade (ART). Under the agreement, the US reduced import tariffs on Indonesian good...
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Mitigating the Risk of Share Freezes
At a press conference in Jakarta on February 23, 2026, the Director General of Taxes announced that the Directorate General of Taxes (DGT) had frozen the shares of two taxpayers, valued at IDR 2.6 billion. However, the enforcement process could not p...
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The Agreement on Reciprocal Trade and Its Implications
In February 2026, the President of the Republic of Indonesia paid an official visit to the United States to attend a series of strategic meetings. A major item on the agenda was economic cooperation, culminating in the signing of the Agreement on Rec...
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Beneficial Ownership in Limited Liability Company Regulations
Beneficial ownership has become a cornerstone of modern corporate governance, indicating a growing emphasis on transparency regarding who ultimately controls and benefits from a legal entity. In Indonesia, this principle is reinforced by th...
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PMK 15 of 2025: Updates to Tax Audit Provisions
On February 14, 2025, the Minister of Finance issued Regulation Number 15 of 2025 (PMK-15) to update Regulation Number 17/PMK.03/2013 (PMK-17). PMK-15 simplifies and reorganizes previous regulations on tax audits to provide legal certainty. Scop...
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Tax Update: Use of Other Values as the Tax Base
BackgroundAt the end of 2024, the Minister of Finance of the Republic of Indonesia issued the Minister of Finance Regulation (Peraturan Menteri Keuangan / PMK) Number 131 of 2024 addressing Value-Added Tax (VAT) treatment on imports of taxable goods,...
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Tax Update: Government-Borne Article 21 Income Tax Incentive
BackgroundIn late 2024, Coordinating Minister for Economic Affairs, Airlangga Hartarto, announced a series of fiscal stimulus packages for 2025. In a press release (Number HM.4.6/440/SET.M.EKON.3/12/2024), he stated that these measures are intended t...
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PMK 119 of 2024: Updates to Preliminary Tax Refund Procedures
On December 27, 2024, the Minister of Finance issued Regulation Number 119 of 2024 (PMK-119), updating the previous Regulation Number 39/PMK.03/2018 (PMK-39). PMK-119 aims to modernize the tax system and improve taxpayer protections by revising proce...
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Understanding the Permanent Establishment Concept and Effective Tax Rate Determination in GloBE
In our previous article, we explored the scope of the Global Anti-Base Erosion Model Rules (GloBE) as outlined in Minister of Finance Regulation (Peraturan Menteri Keuangan / PMK) Number 136 of 2024 on the imposition of a global minimum tax under int...
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PMK 136: Implementing Global Minimum Tax Rules Under International Agreements
On December 31, 2024, the Ministry of Finance of the Republic of Indonesia issued a new regulation regarding the global minimum tax imposition based on international agreements.The Global Minimum Tax (“GloBE”) is a top-up tax developed by the OECD/G2...
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Exploring the GloBE Rules in Indonesian Domestic Provisions
Technological advancements have transformed the global economic landscape. Today, entrepreneurs can conduct business anywhere and anytime, without the constraints of space and time. Companies established abroad can operate in Indonesia without local ...
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E-Invoicing Only for PKP with Over 10,000 Monthly Invoices
The Directorate General of Taxes (DGT) has introduced a new policy through the Director General of Taxes Decree Number KEP-24/PJ/2025, which regulates the use of the e-invoice application. Effective January 1, 2025, e-invoices will only be required f...
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Coretax Rollout: Navigating Transition Period Disruptions
The Directorate General of Taxes (DGT) officially launched Coretax on January 1, 2025. This new tax administration system, which reportedly cost IDR 1.22 trillion, was designed to synchronize and integrate various tax applications across different pl...
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