Criminal Liability in VAT Compliance
In January 2026, the Minister of Finance conducted a surprise inspection of two steel companies located in the Millennium Industrial Estate, Cikupa, Tangerang, Banten. During the inspection, authorities identified indications that several Chinese-own...
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The 2026 Tax Outlook
The government has formally enacted the 2026 state budget through Law of the Republic of Indonesia Number 17 of 2025, which was jointly approved by the House of Representatives. Under the 2026 state budget law, total state revenue is set at IDR ...
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Tax Incentives for Mergers and Acquisitions
Source: IMAA, 2026 Mergers and acquisitions (M&A) are a widely used corporate strategy to expand operations, improve efficiency, and enhance competitiveness. According to the Institute for Mergers, Acquisitions, and Alliances (IMAA), Indones...
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Tax Brief: Fourth Amendment to Coretax Provisions
Tax provisions governing the implementation of Coretax have once again been amended. The government has officially issued Minister of Finance Regulation (Peraturan Menteri Keuangan/PMK) Number 1 of 2026 concerning the Fourth Amendment to PMK Number 8...
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Reformulating Article 21 Withholding Tax
As of now, 186 out of 416 regencies and cities have set their 2026 regency minimum wages (upah minimum kabupaten/UMK). According to the Ministry of Manpower's preliminary recap, the average UMK for 2026 stands at IDR 3.4 million per month. The highes...
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Payment ID and Its Tax Implications
Payment ID and Its Tax ImplicationsTo mark the 80th anniversary of Indonesia’s Independence Day, Bank Indonesia (BI) had initially planned to launch Payment ID. However, BI later confirmed that the launch would not take place as scheduled. Accor...
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Redefining Independence Through Taxation
Redefining Independence Through Taxation On the eve of Indonesia’s 80th Independence Day, President Prabowo Subianto delivered the Financial Note on the 2026 State Budget before members of the House of Representatives and the People’s Consultati...
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What Is Tax in Indonesia?
What Is Tax in Indonesia?In Indonesia, tax is a mandatory contribution paid by the public to the state, as mandated by law. It serves as a significant source of funding for public services and national development. Tax also acts as a substantial inst...
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Selected Topics: VAT on Coal Transactions
Selected Topics: VAT on Coal Transactions The Director General of Taxes, Bimo Wijayanto, recently stated that the Directorate General of Taxes (DGT) is closely monitoring a sharp rise in tax refund claims from the mining sector in the second qua...
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Unveiling the Taxpayer Charter
Unveiling the Taxpayer Charter On July 22, 2025, the Director General of Taxes officially launched Indonesia’s first-ever Taxpayer Charter. The launch took place at the headquarters of the Directorate General of Taxes (DGT) and was attended by t...
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Article 22 Income Tax Collection on E-Commerce
Article 22 Income Tax Collection on E-Commerce Google, Temasek, and Bain & Company (2025) noted in their E-Conomy SEA 2024 report that Indonesia’s digital economy is one of the largest in Southeast Asia. With a population exceeding 280 milli...
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Understanding Regional Taxes and Levies (Part 2)
Understanding Regional Taxes and Levies (Part 2) Debates surrounding regional taxes are far from over. This time, the spotlight is on Jakarta. The Governor of the Special Capital Region, Pramono Anung, clarified that taxes imposed on padel court...
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Minister of Finance Regulation Number 37 of 2025
Tax Brief: Minister of Finance Regulation Number 37 of 2025 – Income Tax Collection via Marketplaces The government has officially issued Minister of Finance Regulation (Peraturan Menteri Keuangan/PMK) Number 37 of 2025 concerning the Appoi...
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Presidential Regulation Number 68 of 2025
Tax Brief: Presidential Regulation Number 68 of 2025 As digital transactions continue to evolve in scale and complexity, the government has deemed it necessary to strengthen its tax regulatory framework, particularly in the area of digital trans...
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