2026 Indonesia Tax & Finance Updates: What Foreign Companies Must Prepare For

Understand the latest regulations, anticipate risks, and position your business for success in Indonesia.

The government has recently introduced several events and regulatory measures that directly impact the financial and taxation landscape. These initiatives are aimed at strengthening economic resilience, improving compliance, and supporting both businesses and individuals. Key highlights include:

1.       Financial Sector Regulations

• New policies to enhance transparency and accountability in financial reporting.

• Stricter requirements for independent auditors, including QR code integration in audit reports for authentication.

• Strengthened supervision of banks and financial institutions to ensure stability and compliance with international standards.

2.       Taxation Policies

• Introduction of incentives for small and medium enterprises (SMEs), including simplified reporting and potential tax reductions.

• Enforcement of updated rules on digital economy taxation, ensuring fair contributions from online businesses.

• Closer alignment of tax procedures with electronic filing and digital systems to improve efficiency and reduce errors.

  
  

3.       Government Support Programs

• Interest subsidies for housing loans and financing incentives for small-scale developers.

• Expanded support for sustainable industries and green investments through tax deductions and financial benefits.

• Ongoing social and fiscal programs designed to balance economic growth with public welfare.

• These updates reflect the government’s continued commitment to financial discipline, transparency, and economic development.

1) 2026 Budget Approval & Fiscal Pressure

On September 23, 2025, the House of Representatives (DPR) approved the 2026 State Budget (APBN) amounting to IDR 3,842.7 trillion, with a projected fiscal deficit of 2.68% of GDP (still below the 3% limit).

• Implication: the management of government spending and revenue will become a strategic issue for the banking sector (government financing) and investors (government bonds).

• Pressure to improve spending efficiency and optimize tax revenue to prevent the deficit from widening.

• Banks often buy government bonds or help sell them. If the government needs to borrow more, banks may see higher demand for their services and potential investment opportunities.

• Government bonds can become more attractive, especially if interest rates rise to draw buyers. But if the deficit grows too much, investors may worry about risk, which could push yields (interest) higher.

• The government must spend efficiently and collect taxes effectively to keep the deficit under control. Better tax collection (for example, from the global minimum tax rules) will help avoid extra borrowing.

2) Interest rate subsidies for housing loans / financing incentives for small-scale developers.

The government introduced a policy to subsidize loan interest (5% for small developers for five years) and also part of the mortgage interest (5.5% to 10%) for loans of up to IDR 500 million.

• This could stimulate lending activity in the property and housing sector, affecting banks’ balance sheets (consumer and housing loans) and the liquidity of the financial industry.

• By paying part of the interest, the government makes borrowing cheaper. This helps developers build more houses and families afford to buy homes.

• Small developers can start or expand projects without worrying as much about high interest costs, and likely to create new jobs in construction and related industries.

• Higher demand for mortgages and construction loans, because borrowing is cheaper. Banks may see growth in their consumer and housing loan portfolios, however, they need to manage liquidity (enough funds to lend) and credit risk if demand spikes quickly.

• Stronger property sector supports economic growth. More housing supply can help reduce the housing backlog and stabilize prices.

  
  

3) Signing of the Indonesia–European Union Trade and Economic Agreement

Indonesia and the European Union signed a “substantive conclusion” of their comprehensive economic partnership, under which approximately 80% of Indonesian products will be exempt from tariffs when the policy takes effect (scheduled to be effective starting January 1, 2027).

• Implication: encourages exports, foreign investment, and regulatory alignment (including taxation and customs aspects) to meet EU standards.

  
  

4) Adjustment of tax regulations and tax administration (Coretax, PER-11/PJ/2025, PMK 52/2025, PMK 53/2025, etc.)

a. PER-11/PJ/2025 — a new regulation in the Coretax era governing withholding, reporting, e-Invoicing, and penalties.

• For example: the deadline for uploading e-Invoices has been extended to the 20th of the following month.

• New provisions on how to calculate Article 25 income tax installments for banks, state-owned enterprises (SOEs), and others.

• With Coretax, many previous regulations have been revoked or simplified.

  
  

b. PMK 52/2025 — adjustment of tax provisions related to the sale/delivery of gold through the bullion exchange. Enacted on July 28, 2025, effective August 1, 2025.

• For example: the sale of gold to Bank Bullion is not subject to Article 22 income tax.

  
  

c. PMK 53/2025 — amendment to PMK 11/2025 regarding “other values as the basis for VAT imposition and specific VAT amounts.”

• Adjusts provisions related to crypto assets, tax base, and other specific values.

• Example: removal of the specific value for crypto transactions (Article 343 provision) in PMK 53/2025.

d. PER-10/PJ/2025 — procedures for information exchange for tax purposes, which consolidate various types of information exchange into a single standardized legal instrument.

• This regulation sets out how Indonesia’s tax authority (the Directorate General of Taxes, or DGT) obtains and provides taxpayer information—both domestically and internationally—under a uniform legal framework.

• Previously, different types of exchanges (such as exchange of information on request, automatic exchange, or spontaneous exchange) might have been governed by separate circulars or agreements. PER-10/PJ/2025 merges them into one consistent set of rules so that all parties—banks, financial institutions, and foreign tax authorities—follow the same procedures and deadlines.

  
  

e. Adjustment of exchange rates as the basis for settling import duty, VAT, Luxury-goods VAT, and Income Tax. Several decrees of the Minister of Finance (MK/EF) set the official exchange rates to be used for these taxes and duties during specific periods in September 2025.

When you import goods or have transactions in foreign currency, the government needs an official exchange rate to calculate how much tax or duty you owe in rupiah.

• Every week (or for certain periods), the Ministry of Finance issues a decree stating the rupiah exchange rate for major currencies.

• That rate is used to determine the amount of import duty, Value Added Tax (VAT/PPN), Luxury-goods VAT (PPnBM), and Income Tax (PPh) you must pay.

  
  

f. POJK (Financial Services Authority Regulation) Number 2 of 2025 sets out the procedures for levies in the financial-services sector, including administrative penalties if payment obligations are not settled on time. It has been in effect since January 1, 2025.

Indonesia’s Financial Services Authority (OJK) collects annual fees (levies) from companies it supervises—banks, insurance firms, investment managers, fintech platforms, etc.

• POJK 2/2025 explains how these fees must be calculated, reported, and paid.

• If a company pays late or underpays, OJK can impose administrative fines or other sanctions.

  
  

g. “Qualified status” for the global minimum tax (global minimum tax / top-up tax).

Indonesia has officially obtained qualified status to implement the global minimum tax provisions under Minister of Finance Regulation (PMK) No. 136/2024.

• Under the OECD/G20 agreement (often called Pillar Two), large multinational enterprises (MNEs) must pay at least 15% effective corporate income tax on their profits in every country where they operate.

• If a company pays less than 15% in a certain jurisdiction, other countries—or the headquarters country—can impose a “top-up tax” to bring the total tax up to 15%.

• Qualified status means Indonesia’s own rules (under PMK No. 136/2024) are officially recognized as meeting the OECD standard.

• Because of this recognition, Indonesia—not another country—gets the right to collect the top-up tax on the profits earned within Indonesia. If Indonesia did not have qualified status, a foreign parent country could collect that extra tax instead, reducing Indonesia’s potential revenue.

  
  

5) Political Volatility & Impact on Financial Markets

• Mass protests erupted in August–September 2025, driven mainly by a plan to grant very large housing allowances to members of parliament, creating widespread public dissatisfaction with fiscal policy.

• In response, President Prabowo carried out a cabinet reshuffle on 8 September 2025, which included the dismissal of Finance Minister Sri Mulyani Indrawati.

• Impact: The stock market and the Indonesian rupiah came under pressure due to political uncertainty and the prospect of new fiscal policies.

  
  

6) World Financial Innovation Series (WFIS) Indonesia 2025

• A major fintech and financial-innovation conference to be held on 25–26 November 2025 in Jakarta.

• Focus areas: digital transformation, payment systems, cybersecurity, and overall financial-services industry (FSI) trends.

• Implications: Serves as a forum for industry players, regulators, and investors to align emerging financial-technology trends with regulation and operational practices.

• National-level economic/business events such as the Indonesia Economic Summit 2025 will also provide a platform for announcing macroeconomic policies, investment plans, and strategies for the financial sector.

Strategic Advisory: What This Means for Your Business

The 2026 financial and tax updates signal a shift toward digitalized compliance, transparency, and global alignment. For foreign and domestic companies in Indonesia, proactive planning is essential.

Key Recommendations:

• Review compliance: Update tax reporting, e-Invoicing, and VAT procedures.

• Reassess financing: Adjust strategies for interest subsidies, government bonds, and lending opportunities.

• Plan for global minimum tax: Evaluate structures to minimize top-up tax exposure.

• Align with international standards: Ensure export, ESG, and regulatory compliance.

👉 Why it matters: Companies that plan strategically reduce risk, optimize taxes, and gain a competitive advantage.

How INi Consulting Turns 2026 Regulations into Opportunity

Navigating Indonesia’s evolving financial and tax landscape doesn’t have to be overwhelming. INi Consulting helps companies turn regulatory complexity into strategic advantage:

• Simplify Compliance: We streamline Coretax, e-Invoicing, and VAT reporting so you stay fully compliant with minimal hassle.

• Optimize Tax Strategy: From global minimum tax planning to corporate structuring, we help you reduce exposure and maximize efficiency.

• Plan Financially Smart: We guide you through government incentives, interest subsidies, and investment opportunities to strengthen your balance sheet.

• Stay Ahead of Risk: Our team monitors political, fiscal, and regulatory changes to ensure your business adapts before challenges arise.

With INi Consulting, your company doesn’t just meet regulations, it leverages them to grow, save costs, and compete more effectively in Indonesia’s dynamic market.