DGT: Ride-Hailing Drivers Eligible for 0.5% SME Final Income Tax

JAKARTA, DDTCNews - The Directorate General of Taxes (DGT) has confirmed that online ride-hailing drivers may use the small and medium enterprise (SME) final income tax scheme at a rate of 0.5%. This topic is among the subjects covered by the national media today, Friday (21/8/2026).

DGT Director of Tax Dissemination, Service and Public Relations, Inge Diana Rismawanti, explained that the 0.5% final income tax is levied on the gross turnover (revenue) earned by ride-hailing drivers. The fraction of gross turnover up to IDR500 million within a single tax year is not subject to income tax.

"Drivers may use the 0.5% final income tax scheme calculated on their turnover, provided they satisfy the applicable requirements," she said.

Inge explained that, in principle, the business model of ride-hailing drivers constitutes a digital platform-based partnership. Accordingly, the relationship between the application company and the drivers is one of partnership.

There are various types of services provided to consumers through digital applications, such as passenger transport, food delivery, parcel delivery, shopping or delivery of daily necessities and other services connected to the platform.

"There are several payment mechanisms on each platform, so the income of ride-hailing drivers must be mapped according to the type of receipts from the services provided by the ride-hailing driver," said Inge.

Inge explained that the gross turnover of ride-hailing drivers is calculated from all income received, whether from primary services or additional income related to services on the digital platform.

Income from primary services covers earnings from transporting passengers, food, goods and shopping services. Meanwhile, additional income includes tips given by customers and cancellation fees passed on to the driver.

In addition, the DGT has mapped the additional income earned by ride-hailing drivers from digital platforms, including performance bonuses or incentives, time- or area-specific incentives and referral bonuses.

There are also incentives granted because drivers participate in promotional programmes or complete certain missions. Further, operational assistance may be provided to drivers based on assessment, the underlying agreement and the purpose of the assistance.

Inge stated that income earned by ojol drivers constitutes an object of income tax. In her view, ride-hailing drivers as individual taxpayers who qualify as SME operators may use the 0.5% final income tax scheme as regulated under Government Regulation (Gov. Reg.) 20/2026.

"This has applied from the outset, as it was already covered under the General Tax Provisions Law, the Income Tax Law, and, specifically for the SME group, is most recently regulated under Gov. Reg. 20/2026. Although it does not specifically mention ojol drivers, when viewed from the characteristics of the income, it already constitutes an object of income tax," she added.

In addition to this news, there is coverage of the House of Representatives (Dewan Perwakilan Rakyat/DPR in Indonesian) pushing for tax reform to increase the tax ratio. There is also a discussion regarding the budget allocation for electric motorcycle incentives.

Below is a full review of the tax articles.

Pres. Reg. on Ride-Hailing Apps Targeted for Issue by September 2026

The Government and the House are finalising the presidential regulation (Pres. Reg.) on ride-hailing apps. The harmonisation and finalisation process for the presidential regulation on ride-hailing apps is targeted for completion by the end of August or, at the latest, the beginning of September 2026.

Deputy Speaker of the House, Sufmi Dasco Ahmad, said the regulation would not only govern passenger transport services but would also cover the transport of goods and food.

"Alhamdulillah, today we have completed the finalisation, as what is being regulated covers not only ride-hailing passenger transport but also the transport of goods and food," he claimed. (DDTCNews, Bisnis Indonesia)

DGT: Taxpayer Attorneys Must Maintain Integrity and Refrain from Fraud

The DGT has affirmed that attorneys acting on behalf of taxpayers must maintain their integrity whilst exercising rights and/or fulfilling tax obligations. The requirements and procedures for taxpayer attorneys are now regulated under MoF Reg. 44/2026.

Senior Expert Tax Instructor of the Directorate of Tax Dissemination, Service and Public Relations of the DGT, Eddy Triyono, cautioned that an attorney must not commit violations or even fraud and thereby face penalties. Penalties that may be imposed include the suspension or revocation of a tax consultant licence or a certificate of registration (surat keterangan terdaftar/SKT in Indonesian) for other parties.

"They [the attorneys] must maintain integrity. Because if there is fraud in the fulfilment of obligations and the exercise of rights, the certificate of registration may be suspended or revoked," he said. (DDTCNews)

House Budget Committee Urges Tax Reform to Raise the Tax Ratio

The House Budget Committee (Badan Anggaran/Banggar in Indonesian) is urging the government to strengthen fiscal capacity through tax reform. Strengthening fiscal capacity needs to be a priority in the formulation and implementation of the state budget (anggaran penerimaan dan belanja negara/APBN in Indonesian) in subsequent years in order to increase the tax ratio.

"In terms of taxation matters, there is still an opportunity to improve our tax ratio," said Budget Committee Deputy Chairperson, Muhidin Mohamad Said.

In the 2027 draft state budget (rancangan anggaran penerimaan dan belanja negara/RAPBN in Indonesian, the government has proposed an economic growth assumption of 6%. With that level of economic growth, tax revenue is targeted to reach IDR2,591.4 trillion, with a tax ratio of 9.27% of GDP. (DDTCNews)

DGT Urges Public to Purchase Stamps from Authorised Agents

The DGT is urging the public to purchase stamps only through official channels designated by the Government.

Purchasing stamps through official channels is deemed important to protect the public from counterfeit or previously used stamps.

"We urge the public to purchase stamps only through official channels and not to be easily tempted by offers below the set price," said Director General of Taxes Bimo Wijayanto. (DDTCNews)

Purbaya Allocates IDR3 Trillion Budget for Electric Motorcycle Incentives

Minister of Finance, Purbaya Yudhi Sadewa, has prepared a budget of IDR3 trillion to run the electric motorcycle incentive programme. The planned incentive value per unit of electric motorcycle has been set at IDR3 million.

"The programme targets 1 million [units of electric motorcycles], but it will certainly not be exhausted this year. If I recall correctly, each one receives an incentive of IDR3 million," he said.

Purbaya explained that the target is for incentives to be provided for 1 million electric motorcycles, but distribution will be implemented in stages. He estimated that only around 100,000 electric motorcycles would receive incentives by year-end. (DDTCNews, Kontan, CNBC Indonesia) (dik)