Labour Advisor Says Finance Minister Open to 0% JHT Tax

Presidential Special Advisor on Labour and President of the Confederation of Indonesian Trade Unions (KSPI), Said Iqbal, has revealed the outcome of a meeting with Finance Minister Purbaya Yudhi Sadewa at the Ministry of Finance. He stated that Purbaya responded positively to workers’ complaints regarding the imposition of taxes on Old Age Security (JHT) benefits. “Today, we conveyed two matters to the Finance Minister, and he gave a very positive response. First, we requested a 0% tax on JHT. The reasoning is that JHT, as a social savings scheme, should have taxes imposed on the returns, not the savings themselves. However, the Minister will study this further and consider making changes,” Said Iqbal told reporters in Jakarta on Wednesday (8/7/2026). Said Iqbal also requested an evaluation regarding the potential for progressive tax on JHT if a worker is laid off and re-employed multiple times. He noted that the Finance Minister indicated the tax should ideally be imposed only once, but the ministry will first hold internal discussions on the matter. Furthermore, the discussion covered the tax threshold for JHT. Under Government Regulation No. 68 of 2009, JHT amounts from Rp0 to Rp50 million are tax-free, while amounts above Rp50 million are subject to a 5% tax. Said Iqbal argued that this regulation is 17 years old and needs updating. He said the Finance Minister acknowledged that inflation would be a consideration, suggesting the threshold could be raised beyond the current Rp50 million limit. Said Iqbal summarised the meeting’s conclusions, stating that the Finance Minister aims to absorb public aspirations, particularly those of workers and employees. The three main outcomes were: an evaluation of the JHT tax rate, with the Ministry of Finance to study its impact on state revenue; a likely agreement that progressive tax on JHT should only be applied once; and a review of the tax threshold, which could be raised to Rp100 million, Rp200 million, or even Rp400 million based on gold prices and inflation, pending further study by the ministry’s team.