Tax Incentives Continued to Provide Business Certainty

JAKARTA, DDTCNews - The government is seeking to establish a conducive business climate through tax policy certainty and well-targeted tax incentives.

Director General of Taxes, Bimo Wijayanto, stated that entrepreneurs can operate effectively when tax policies are clear, infrequently changed and supported by a tax system that facilitates commercial activity. These elements will encourage taxpayers to be more compliant in fulfilling their tax obligations.

"Tax certainty will help entrepreneurs understand their obligations and feel more confident in planning long-term investment," he said at the 7th BRITACOF, Wednesday (14/10/2026).

To establish policy certainty and well-directed incentives, Bimo stated that the Directorate General of Taxes (DGT) has implemented clearer and fairer tax regulations since the enactment of the Law on Harmonisation of Tax Regulations (Harmonisasi Peraturan Perpajakan/HPP in Indonesian) in 2021.

Further, the DGT has also consolidated provisions on the advance pricing agreement (APA) and mutual agreement procedure (MAP). This aims to assist entrepreneurs in understanding pricing assessments, tax obligations and dispute resolution procedures.

The DGT has also undertaken tax administration system reform by launching the coretax system in 2025. In addition, the DGT has adopted the global minimum tax (GMT) framework and has applied the final income tax for micro, small and medium enterprises (MSMEs) without a time limit for individual taxpayers engaged in business.

The government has also applied tax policy in line with international agreements, namely the global minimum tax (GMT) and has applied the final income tax for MSMEs without a time limit for individual taxpayers engaged in business.

"The implementation of the GMT has the potential to add complexity. Businesses will naturally require guidance to understand domestic tax rules and applicable incentives alongside the GMT's implementation," said Bimo.

In line with this, Bimo disclosed that a number of incentives remain in force and available for businesses to utilise at present.

First, the tax holiday incentive for pioneer industries has been extended until 2026 in line with the implementation of the GMT. Second, tax allowance or net income reduction of 30% of the total investment value.

Third, the application of the MSME final income tax at a rate of 0.5% without a time limit for individual taxpayers engaged in business. Fourth, a super-tax deduction of up to 300% for research and development (R&D) purposes.

Fifth, government-borne (ditanggung pemerintah/DTP in Indonesian) VAT for housing and government-borneArticle 21 income tax for workers in labour-intensive industries and tourism. Sixth, fiscal incentives, such as exemption from import duty, excise and taxes on imports within special economic zones (SEZs).

"Our objective is to establish a stable, transparent and predictable tax environment to support cross-border investment and trade," said Bimo. (rig)