Government Grants Tax Cut for Writers

Government plans to offer a 1.5% Final Income Tax (PPh Final) reduction for writers in the second semester of 2026, as decided during a cross-ministerial meeting chaired by Economic Affairs Minister Airlangga Hartarto on Tuesday, 26 May 2026.

Airlangga stated the tax incentive for writers was approved in a meeting attended by Finance Minister Purbaya Yudhi Sadewa, Interior Minister Tito Karnavian, Minister of Administrative and Bureaucratic Reform Rini Widyantini, and Labour Minister Yassierli. “It has been decided to provide a 1.5% Final Income Tax incentive for writers,” he said.

The tax cut will automatically apply to writers who publish books with a clear International Standard Book Number (ISBN). The relief is part of a broader economic stimulus package to support second-quarter 2026 growth, alongside transport discounts during school holidays and the Christmas-New Year (Nataru) period.

Finance Minister Purbaya Yudhi Sadewa explained the rationale for the tax incentive, noting the small number of writers, particularly academic ones. He added that the measure aims to encourage more people to write books due to lower tax rates.

Purbaya stated the economic impact would not be immediate but long-term, with the goal of increasing public interest in reading and broadening societal knowledge. The government also hopes for a wider variety of published books, not just fiction but also academic works, and more high-quality local economic titles. “This will prevent public opinion from being dominated by TikTok economics,” he said.