Announcement! Prabowo Plans to Adjust Tax-Free Income Threshold by 2027

President Prabowo Subianto plans to change the Non-Taxable Income (PTKP) threshold in 2027. This was revealed by the Coordinating Minister for Economic Affairs, Airlangga Hartarto, following a limited meeting with Prabowo at the State Palace, Jakarta, on Wednesday (30/09/2026).

“The discussion today concerned the improvement of the PTKP figures,” said Airlangga after the meeting.

Airlangga explained that the plan for the 2027 PTKP is to adjust to the development of price pressures, otherwise known as inflation. However, the specific amount is still being calculated by the Ministry of Finance.

“It will be adjusted according to inflation figures. We are currently calculating this together with the Minister of Finance,” said Airlangga.

As is currently known, the PTKP threshold for individual taxpayers is recorded at Rp 4.5 million per month, or Rp 54 million per year.

Labour groups have been requesting a change to this threshold since late last year to protect the purchasing power of the working class. At that time, the President of the Indonesian Confederation of Trade Unions (KSPI), Said Iqbal, requested that the PTKP be increased from Rp 4.5 million per month to Rp 7.5 million per month.

“If the PTKP is raised to Rp 7.5 million, all workers, including us, will not be subject to tax. What is the effect? Because we are not taxed, the money we hold will increase. We will certainly spend it. If we spend, purchasing power rises,” he asserted.