Personal Tax Relief Set to Rise; Government Plans Revenue Strategies

JAKARTA, DDTCNews - The government is examining plans to adjust the personal tax relief (penghasilan tidak kena pajak/PTKP in Indonesian) threshold, taking a number of aspects into consideration. This topic is among the subjects covered by national media today, Friday (2/10/2026).

Coordinating Minister for Economic Affairs Airlangga Hartarto said that discussions on adjusting the personal tax relief threshold are being conducted jointly with the Ministry of Finance (MoF). One of the considerations being used by the government is the development of inflation.

"There was discussion earlier about improving the PTKP figure to adjust it to the inflation rate. We are currently calculating this together with the the minister of financence," he said.

The plan forms part of the government's review to determine the appropriate level of personal tax relief. This means the adjustment does not only take into account changes in the cost of living, but also the policy's consequences for the economy and state revenue.

Deputy Minister of Finance, Juda Agung, emphasised that the personal tax relief level needs to be calculated carefully, taking into account its impact on people's purchasing power as well as tax revenue.

"[Changes to personal tax relief] are being reviewed. Of course there is an impact on people's purchasing power, but at the same time, income tax [revenue] will naturally decrease," he said.

Juda explained that an increase in personal tax relief may potentially give people greater scope to spend their income. By raising the threshold of income exempt from tax, the policy is expected to support people's purchasing power and consumption.

However, from a fiscal standpoint, an increase in personal tax relief also has consequences for individual income tax revenue. The higher the threshold of income exempt from tax, the lower the portion of income that enters the calculation of taxable income.

An adjustment that is too low risks failing to adequately accommodate changes in economic conditions and inflation trends. Conversely, too large an increase could have an adverse impact on income tax revenue.

"We are currently reviewing the optimal level," Juda said.

For reference, personal tax relief is a deduction from net income for individual taxpayers in determining the amount of taxable income.

Provisions on personal tax relief were first regulated in 1984 and have undergone several amendments. Currently, the personal tax relief level is governed by MoF Reg. 101/2016.

In addition to this news, there is coverage of the implementation of Article 22 Income Tax collection by marketplace providers. There is also discussion of the issuance of letters of inquiry (surat permintaan penjelasan atas data dan/atau keterangan/SP2DK in Indonesian) by the tax authority.

Here is a full review of today's tax articles.

DGT: Personal Tax Relief May Increase

The Directorate General of Taxes (DGT) considers that it is possible for the government to raise the personal tax relief threshold.

Director General of Taxes, Bimo Wijayanto, said that a rise in personal tax relief does have the potential to reduce tax revenue. However, he is optimistic that the potential decline in revenue can be offset through improved compliance, a broadened tax base and strengthened coretax system performance.

"Actually, we do not need to be overly concerned about this. If the government decides to raise [personal tax relief], that is perfectly fine," he said. (Kontan, DDTCNews)

Art. 22 Income Tax Collection by Marketplace Providers Start 1 October

The government has officially implemented the policy of Article 22 Income Tax collection by marketplace providers from 1 October 2026.

Bimo said the DGT has designated 4 marketplace providers as third parties responsible for collecting Article 22 Income Tax on income received by online merchants (sellers) through their platforms. The designations were made after the government considered the system's readiness and digital infrastructure of each platform.

"We conducted the designations on 24 September, so collection has already begun today. Four marketplaces have been designated, including Blibli, Shopee, Tokopedia and Lazada," he said. (DDTCNews, Kontan, CNBC Indonesia)

DGT Issues 454,377 Letters of Inquiry Through September

The DGT has issued 454,377 letters of inquiry (surat permintaan penjelasan atas data dan/atau keterangan/SP2DK in Indonesian) from January through September 2026. Bimo said the letters have been delivered by tax offices electronically, either via taxpayer email or through coretax.

Of that total, 384,396 SP2DKs were sent via taxpayer email. Meanwhile, 69,981 SP2DKs were issued through coretax accounts.

According to Bimo, the majority of SP2DKs are still being sent via taxpayer email because the data or transactions underpinning their issuance originate from periods prior to the implementation of coretax in 2025. (DDTCNews)

Implications of Abolition of Delta Scheme for Amended Tax Returns

Director General of Taxes Regulation Number PER-12/PJ/2026 also governs the exercise of tax rights and obligations for taxpayers thaf file amended tax returns. Referring to Article 129A inserted into PER-11/PJ/2025 by PER-12/PJ/2026, the exercise of tax rights and obligations is implemented based on the last filed amended tax return.

"In the event that a taxpayer files an amended tax return, the exercise of tax rights and fulfilment of tax obligations shall be implemented based on the last filed amended tax return," reads Article 129A paragraph (1) of PER-12/PJ/2026.

For reference, one of the significant changes to the tax return administration mechanism following the issuance of PER-12/PJ/2026 is the abolition of the delta scheme in the amendment of tax returns. Under this change, the amendment of tax returns uses a replace mechanism. (DDTCNews)

Prabowo Inaugurates 2 New Deputy Ministers of Finance

President Prabowo Subianto inaugurated ministers and deputy ministers for the remainder of the 2024 to 2029 term of office. Among the officials inaugurated, 2 individuals were sworn in as Deputy Ministers of Finance, namely Nurkholisoh Ibnu Aman and Luky Alfirman.

Minister of Finance, Suahasil Nazara, affirmed that all three deputy ministers will work together to support the MoF in carrying out its duties. The division of responsibilities will be discussed jointly and aligned with the ministry's overall duties and functions.

"In terms of the appointment by the President, each has been appointed as a deputy minister of finance. As such, the three of us, with me as the minister of finance, will certainly sit down together and look at the full scope of the MoF's work, which is so comprehensive, and then we will complement one another," he said. (DDTCNews) (dik)