Ministry of Finance Reviews PTKP Changes: Tax-Free Salary Threshold to Increase

The Deputy Minister of Finance, Juda Agung, has revealed that the Ministry of Finance is currently reviewing an adjustment to the Non-Taxable Income (PTKP) for taxpayers, slated for 2027.

“It is currently under review,” Juda replied when confirmed by the media on Thursday (1/10/2026).

Juda stated that his office is calculating the impact of this proposed incentive policy on public purchasing power. The discussion regarding the adjustment of the PTKP emerged following deliberations on economic stimulus programmes and several government initiatives held at Istana Merdeka, Jakarta, on Wednesday (30/9/2026).

Furthermore, the government has confirmed it will continue the policy of reducing Income Tax Article 21 (PPh 21) for workers earning below Rp10 million, targeting approximately 7.5 million workers through 2027.

Juda noted that if both policies—the increase in PTKP and the reduction of PPh 21—are implemented in 2027, the boost to public purchasing power will be further optimised.

“At the same time, the income tax will naturally decrease, won’t it? If the PTKP rises. So, we are currently reviewing the optimal level,” Juda continued.

As is currently known, the PTKP threshold for taxpayers is set at Rp54 million per year, or Rp4.5 million per month. More specifically, based on Article 1 of the Minister of Finance Regulation Number 101/PMK.010/2016 (PMK 101/2016), the PTKP breakdown is as follows:

• Rp54,000,000 for the individual taxpayer;

• An additional Rp4,500,000 for married taxpayers;

• An additional Rp54,000,000 for a wife whose income is combined with her husband’s;

• An additional Rp4,500,000 for each blood relative and relative by marriage in a direct line, as well as adopted children who are fully dependent, up to a maximum of 3 people per family.