Indonesian Political, Business & Finance News

Purbaya Not Yet Implementing Wealth Tax and Toll Road VAT

| Source: TEMPO_ID_BISNIS Translated from Indonesian | Finance

Finance Minister Purbaya Yudhi Sadewa has assured that there will be no collection of personal income tax on high-wealth individuals (HWI) or value-added tax (VAT) on toll road tariffs. The State Treasurer stated that such levies are long-term proposals and not a priority.

Purbaya emphasised that the Secretary General of the Ministry of Finance, Robert Leonard Marbun, also does not recommend including those policies in ministerial regulations. “So it’s still the old regime. That’s why we’re making small changes to make it more orderly,” he said in Jakarta on Friday, 24 April 2026.

The former Chairman of the Indonesia Deposit Insurance Corporation (LPS) stated that to increase state revenues, the government will not yet add new tax objects but will strengthen legal enforcement. This is particularly targeted at companies engaging in tax fraud practices such as underinvoicing. Tax increases will be implemented if economic conditions have improved.

The wealth tax and VAT on toll road tariffs emerged in Director General of Taxes Decision No. Kep-252/PJ/2025 on the Strategic Plan of the Directorate General of Taxes (Renstra DJP) for 2025-2029.

The implementation of the regulation aims to increase state revenues. Director of Outreach, Services, and Public Relations of the Directorate General of Taxes, Inge Diana Rismawanti, said the HWI tax regulation is still in the policy planning stage. According to her, in principle, strengthening supervision of HWI taxpayers is part of efforts to enhance fairness and voluntary compliance in the tax system.

The criteria for HWI to be used will consider several indicators, such as wealth and income profiles, asset ownership, and transaction complexity—including those that are cross-jurisdictional.

“This approach is carried out within the framework of risk-based compliance, so the focus is on strengthening supervision and utilising data to ensure tax obligations are fulfilled accurately,” said Inge when contacted on Thursday, 23 April 2026.

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