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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Resident Taxpayers: Definition, Criteria, and Latest Regulations
Determining whether a taxpayer qualifies as a resident taxpayer is a fundamental aspect of Indonesia’s tax system. This classification not only establishes the taxing rights of the Indonesian tax authorities but also defines the taxpayer’s obligation...
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Environmental, Social, and Governance: Understanding Responsible Investment in Indonesia
The severe floods that recently hit Sumatra and Aceh are a stark reminder that environmental damage can trigger widespread social and economic consequences. Alongside heavy rainfall, illegal logging and mining practices have diminished the water...
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Tax Holidays in Indonesia's Special Economic Zones
The Ministry of Finance has reported a steady increase in the estimated value of tax expenditures related to tax holiday incentives in Special Economic Zones (SEZs) over the years. While the growth is modest, it reflects a rising interest and confide...
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Pioneer Industry Tax Incentives: Requirements and Forecasts for 2025
The 2023 tax expenditure report has been released, providing an overview of the government budget allocated for various tax incentives, including tax allowances, tax holidays, and other benefits. These incentives are designed to stimulate economic gr...
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Tax Revenue Realization in Q3 2025
The government has released its performance report for the state budget (APBN Kita) for November 2025. This report presents the leading macroeconomic indicators, including inflation, economic growth, commodity price movements, and state revenue perfo...
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Latest Changes to the 2025 OECD Tax Treaty Model
The Organisation for Economic Co-operation and Development (OECD) has released the latest updates to the OECD Model Tax Convention on Income and Capital. This update includes detailed guidance on taxing cross-border remote work as well as new pr...
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PER-19/PJ/2025: Beware of Tax Invoice Access Deactivation
The Directorate General of Taxes (DGT) has issued Regulation Number PER-19/PJ/2025, which sets out the rules for deactivating access to the issuance of tax invoices for taxable entrepreneurs (pengusaha kena pajak/PKP) who fail to meet their tax ...
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Arm’s Length Principle: A Cornerstone of TP Doc
As 2025 draws to a close, taxpayers are reminded to start preparing their financial statements and supporting documents for tax return filing. For taxpayers engaging in related-party transactions, one crucial requirement that must not be overlooked i...
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Updates to the 0.5% MSME Final Income Tax and Its Business Impact
The government is currently preparing amendments to Government Regulation (Peraturan Pemerintah/PP) Number 55 of 2022 concerning Income Tax Adjustments. One of the main areas under review is the application of final income tax for micro, small, and m...
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