Government introduces 1.5% final income tax for writers, Purbaya explains rationale

JAKARTA - The government is introducing a 1.5% final income tax rate for writers as part of its second-half 2026 economic stimulus package. Finance Minister Purbaya Yudhi Sadewa said the incentive was introduced due to the limited number of writers in Indonesia, particularly scientific authors. ‘The number of writers here is small, especially scientific authors,’ Purbaya said at the Coordinating Ministry for Economic Affairs office in Jakarta on Tuesday, 26 May 2026. ‘The goal is to encourage Indonesian writers to be more active by lowering their tax rate.’ Purbaya stated the policy aims not only to support writers economically but also to strengthen literary culture and increase the number of scientific and economic books in Indonesia. ‘Not just storybooks, but high-quality scientific and economic books, so your views aren’t dominated by TikTok economics,’ Purbaya said. Meanwhile, Risalah dari Qatar author Iksan Mahar said the incentive could positively encourage writers, though its impact may not be significant for all. ‘It should have an effect with the 1.5% stimulus, but considering the nominal amount, I don’t think it’s very significant,’ Mahar said. He added that the policy’s impact would vary among writers depending on their contract terms and royalty agreements with publishers. ‘It depends on each writer’s contract with the publisher. So the stimulus will have different effects on each writer,’ he explained. Earlier, Coordinating Minister for Economic Affairs Airlangga Hartarto said the incentive was decided during a limited government coordination meeting on economic stimulus. Airlangga explained that taxpayers eligible for the final income tax incentive include all writers whose books have an International Standard Book Number (ISBN). He added that the 1.5% final income tax incentive for literary sector workers would be further regulated under a finance ministerial regulation (PMK). ‘Writers covered include anyone who publishes a book with a clear ISBN, as authors. This will be detailed in the PMK,’ Airlangga added. ‘For writers’ taxation, we have decided to provide a 1.5% final income tax incentive,’ Airlangga said. Airlangga stated the policy is part of the government’s second-half 2026 economic stimulus package, alongside transport discounts, national internships, and vocational training programmes.