Fiscal Incentive Regulations Set to be Completed by the End of the Month in 2025
In a recent press conference held by the Financial System Stability Committee (KSSK) at the Ministry of Finance in Jakarta, Minister of Finance Sri Mulyani Indrawati announced that the fiscal incentive regulations for the year 2025 are on track to be finalized by the end of this month. The committee highlighted the importance of maintaining Indonesia’s financial stability amidst increasing global economic pressures.
Progress Towards Completion
Minister Sri Mulyani emphasized that various Ministerial Regulations (PMK) related to fiscal incentives are currently in the final stages of completion. Once these regulations are finalized, they will be made public for all stakeholders to review. The Minister expressed her hope that the process will conclude by the end of January, underscoring the government’s commitment to accelerating these crucial initiatives despite a busy schedule.
Existing Fiscal Incentives
To date, the government has issued one PMK concerning fiscal incentives, specifically PMK 135/2024, which addresses the luxury goods sales tax (PPnBM) borne by the government. This regulation mandates a full (100 percent) government coverage of PPnBM for certain four-wheeled battery-based vehicles, whether imported as a whole (CBU) or produced domestically using assembly components (CKD). The implementation of this rule spans from January 2025 to December 2025.
Additional Incentives
In addition to the PPnBM incentive, the government offers other incentives, such as the DTP Article 21 Income Tax for labor-intensive industries with a maximum monthly income of Rp10 million, financing for machinery revitalization in labor-intensive industries with a 5 percent interest subsidy, and a 50 percent assistance for work accident insurance in labor-intensive sectors for six months. Furthermore, there are DTP value-added tax (VAT) incentives for house sales priced up to Rp 5 billion, covering 100 percent of the price up to Rp 2 billion (from January to June 2025) and 50 percent (from July to December 2025). Additionally, ongoing incentives include a 50 percent electricity discount for customers with 2200 VA or below for two months (January and February).
Official Statement and Future Outlook
Minister Sri Mulyani’s proactive approach to ensuring the timely completion of fiscal incentive regulations demonstrates the government’s commitment to supporting economic growth and stability. As Indonesia navigates the evolving global economic landscape, these incentives play a vital role in stimulating key industries and promoting financial resilience. Stay tuned for further updates as the government continues to prioritize impactful fiscal policies for the benefit of all stakeholders.
