House: Government to Review Art. 21 Income Tax on JHT Disbursements

JAKARTA, DDTCNews - Kamrussamad, a member of Commission XI of the House of Representatives (Dewan Perwakilan Rakyat/DPR in Indonesian), is urging the government to review the application of final income tax under Article 21 on releases of old age security (jaminan hari tua/JHT in Indonesian) funds.

Kamrussamad stated that it is necessary to review the imposition of Article 21 Income Tax on old age security disbursements exceeding IDR50 million, which is currently applied pursuant to Gov. Reg. 68/2009.

"I am urging the government to review the application of Article 21 Income Tax for JHT balances exceeding IDR50 million," he said, as quoted on Friday (3/7/2026).

Kamrussamad explained that workers cannot simply be categorised as high-income earners even if their old age security balance disbursement exceeds IDR50 million. Such workers may well be lower-middle-class individuals with expenditures of around IDR3 million per month.

Accordingly, the government needs to review the 5% rate that has long been applied to the fraction of old age security disbursements exceeding IDR50 million.

"Please calculate how much state revenue has been collected from balances above IDR50 million. If the figure is not particularly significant, the use of the 5% rate for balances above IDR50 million should be reviewed," said Kamrussamad.

Moreover, Kamrussamad also urged the government to allow an evaluation. Thus, protection for workers remains a priority amid the economic challenges faced by the public.

"If it were possible to introduce an exemption, such as 0% for amounts up to IDR50 million, that would be most welcome," said Kamrussamad. (rig)