Government Cuts Writer's Tax Rate to 1.5%
The government has introduced a tax incentive for writers by lowering the final income tax (PPh) rate to 1.5%. The policy is part of the economic stimulus package planned for the second half of this year. Coordinating Minister for Economic Affairs Airlangga Hartarto stated the government has decided to provide this tax incentive to support writers’ productivity in Indonesia.
‘For writer taxation, we have decided to offer a tax incentive with a final PPh rate of 1.5%,’ Airlangga said at the Coordinating Ministry for Economic Affairs in Jakarta on Tuesday (26/5/2026).
According to Airlangga, the policy is part of the second-half economic stimulus, alongside transport subsidies, national internships, and vocational training.
Finance Minister Purbaya Yudhi Sadewa explained the incentive is due to the limited number of writers in Indonesia, particularly scientific authors.
‘Because there are few writers here, especially scientific writers,’ Purbaya said.
He explained the final tax rate, previously around 6%, was reduced to 1.5% to encourage writers to produce more works.
‘Just so Indonesian writers become more active. Because they pay lower taxes,’ he said.
Purbaya added the policy aims not only to assist writers but also to strengthen literacy culture and increase the number of scientific and economic books in Indonesia.
‘Not just storybooks, but good scientific and economic books. So your views aren’t dominated by TikTok economics,’ Purbaya stated.
Book author Iksan Mahar, who wrote ‘Risalah dari Qatar’, said the incentive could support writers, though its impact may not be significant for all.
‘It should have an effect with the stimulus at 1.5%, but looking at the nominal amount and percentage, I don’t think it’s very significant,’ Mahar said.
He noted the policy’s impact would vary per writer depending on their contract and royalty arrangements with publishers.
‘This depends on each writer’s contract with the publisher, so the stimulus’s effect will differ for each,’ he explained.