Financial Center Tax Incentives: Indonesia on the Path to Tax Haven?
JAKARTA, DDTCNews – Plans to establish an international financial centre offering special tax incentives could potentially position Indonesia as a tax haven. This topic is among the subjects reviewed in the national media today, Friday (26/6/2026).
Coordinating Minister for Economic Affairs, Airlangga Hartarto, did not elaborate clearly on the potential for Indonesia to become a tax haven. He only stated that tax facilities at financial centres are commonly provided to attract investors, as in Singapore and Dubai, United Arab Emirates.
"Tax havens exist everywhere now; in Dubai and Singapore, there are also tax havens," he said.
Airlangga stated that the construction of a financial centre aims to attract large-scale investment flows. He noted that Indonesia requires new breakthroughs to attract investors to place their stated capital in Indonesia.
Drawing lessons from Singapore, he noted that the neighbouring country has been able to attract investment of up to IDR5,000 trillion through its financial centre. As another example, the Dubai International Financial Centre has been able to draw in investment of around USD800 billion, equivalent to IDR14,300 trillion.
"If we use the traditional investment [method] now, in one year, it is approximately IDR2,200 trillion for investment. Compare that with Singapore, they can attract investment related to their financial centre of IDR5,000 trillion," said Airlangga.
He noted that the potential for investment across various sectors in Indonesia is substantial. In line with this, the construction of a financial centre is seen as important as one of the means to advance the government's investment agenda.
"As such, we must be attractive, looking at the global picture. In the world, financial centres are limited, only in Singapore, Dubai, Hong Kong and then some parts of the US," said Airlangga.
Airlangga stated that the government is currently drafting a legal framework at the level of a law governing the operation of a financial centre, as provided for under Law 4/2026.
The specific law on the administration of Indonesia's international financial centre must be enacted no later than 3 months from the date Law 4/2026 was promulgated. Promulgated on 17 June 2026, Law 4/2026 is declared to have come into force thereafter.
Indonesia's financial centre will subsequently be managed by a special council, known as the Indonesia International Financial Centre Council. To support the achievement of the financial centre's establishment objectives, the government will apply special tax provisions within that zone.
"In the context of achieving the objectives of Indonesia's international financial centre..., to business activities at Indonesia's international financial centre, special tax treatment shall apply as well as special tax facilities and other special facilities shall be granted," reads Article 248A paragraph (6) of Law 4/2026.
In addition to the above topic, there is also a review of the collection of Article 22 Income Tax by marketplace providers. There is also the discussion of indications of tax offences at a Chinese steel company, special debt securities issued by Danantara and other matters.
The following is a full review of the tax articles.
Financial Centre and Family Office to Boost Confidence in Indonesia
Chairperson of the National Economic Council (Dewan Ekonomi Nasional/DEN in Indonesian), Luhut Binsar Pandjaitan, said the establishment of a financial centre and family offices will increase investor confidence in Indonesia.
Luhut said the financial centre and family offices are instruments for establishing legal certainty in Indonesia. Investors' confidence in placing their stated capital at Indonesia's financial centre through family offices will also help boost overall confidence in the Indonesian economy.
"A year and a half ago, the proposal was for an international financial centre, with family offices there. My actual objective at the time was to build our credibility regarding the law, because we are known to be inconsistent with the law," said Luhut. (DDTCNews/Bisnis Indonesia/Kontan)
IDR500 M Turnover Art. 22 Income Tax Exempt, DGT Urges Honesty
Director of Tax Dissemination, Service and Public Relations of the Directorate General of Taxes (DGT), Inge Diana Rismawanti, confirmed that online merchants operating on marketplaces may be exempt from Article 22 Income Tax collection if their turnover has not exceeded IDR500 million in a year.
To obtain this incentive, individual taxpayers who own a merchant account must submit a statement letter stating that their turnover has not exceeded IDR500 million. Regarding the submission of such a statement letter, she reminded merchants to be honest about the value of their turnover.
"Each seller is expected to be honest. If their turnover is still below IDR500 million, they must inform their platform: 'My turnover is still below IDR500 million, as such, you do not need to conduct withholding tax on the income I receive'," she said. (DDTCNews)
Purbaya Inspects Chinese Steel Firm Over Suspected Tax Offences
Minister of Finance, Purbaya Yudhi Sadewa, conducted an unannounced inspection of a Chinese steel company operating in the Pulogadung area due to suspected non-compliance with applicable tax provisions.
Purbaya said the inspection was carried out due to indications of a discrepancy between the scale of the company's business activities and the tax obligations it had reported. In addition, there were suspicions that the amount of tax paid by the company did not reflect the scale of its business activities.
"We requested the company to present relevant documents for the entire process to be conducted transparently and fact-based. As such, we can assess fairly how the business practices are being conducted," he said in an official statement. (DDTCNews)
Airlangga: Investment in Danantara Special Securities Is Not Money Laundering
Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated that the purchase of special securities issued by Danantara, such as patriot bonds and merah putih bonds, does not constitute money laundering.
According to Airlangga, the purchase of securities or investment activities cannot be regarded as money laundering because investors place their funds in official instruments. He also assessed that this new policy does not undermine global confidence in Indonesia as a member state of the Financial Action Task Force (FATF), the organisation that combats money laundering regimes.
"As for FATF, we are already a member. So, of course, our investments are not part of money laundering," he said. (DDTCNews/Kontan)
Government Prepares Subsidised Flats; Purbaya Offers Government-Borne VAT Incentive
The government will provide fiscal support to strengthen access for low-income communities (masyarakat berpenghasilan rendah/MBR in Indonesian) to decent housing in the form of subsidised flats in urban areas.
Minister of Finance, Purbaya Yudhi Sadewa, stated that the government is currently providing fiscal support in the form of government-borne (ditanggung pemerintah/DTP/in Indonesian) value added tax (VAT). He hopes this effort will maintain the affordability of subsidised flat prices.
"The utilisation of the government-borne VAT mechanisms demonstrates how fiscal policies can be deployed in a targeted manner to support the national development agenda," he claimed. (DDTCNews/Kontan)
Marketplace Tax from 1 July? DGT: Await the MoF Decree
The Directorate General of Taxes (DGT) has not confirmed that the collection of Article 22 Income Tax on domestic online merchants on marketplaces will commence from 1 July 2026.
Director of Tax Dissemination, Service and Public Relations of the DGT, Inge Diana Rismawanti, said the commencement of tax collection on merchants operating through marketplaces will be determined by the Minister of Finance.
"I cannot yet say it will apply from 1 July, the Minister [Purbaya Yudhi Sadewa] will determine the matter," she said. (DDTCNews)
