Cimahi MSME Players Vent on Tax in PP 20/2026: Just Surviving is Already Alhamdulillah

Small and medium enterprise (MSME) players in Cimahi, West Java, have responded to the issuance of Government Regulation (PP) Number 20 of 2026, which stipulates income tax (PPh) rates for MSME operators.

Under PP 20/2026, taxpayers or MSMEs with a turnover below IDR 500 million per annum remain subject to a 0 percent tax rate. Meanwhile, businesses with a turnover of up to IDR 4.8 billion per annum are subject to a final PPh of 0.5 percent. The PPh rate in this latest government regulation is now permanent.

Yuliawati (48), an MSME operator from Cimahi, admitted that she was already aware of the latest MSME PPh information. However, overall she has not yet received complete information or direct dissemination from the relevant authorities.

“I read the information from the news, but there has been no direct outreach yet. But if my business falls into that PPh category, it seems quite burdensome,” Yuliawati told Republika on Wednesday (3/6/2026).

However, it is not the latest PPh that is causing MSME players like Yuliawati to cry out and worry at this moment, but rather the swelling production costs and thinning profit margins. She cited the example of non-subsidised LPG canister prices, which have risen drastically from IDR 200,000 to IDR 230,000 per canister.

Moreover, the prices of plastic, cooking oil, and other materials have also increased. This price surge is suspected to be a result of a strengthening dollar that has not been matched by the rupiah, which is weakening.