Tax Exemption for SOE Consolidation, Purbaya: We Give It 3 Years

Jakarta, CNBC Indonesia - Finance Minister Purbaya Yudhi Sadewa has revealed that the decision to exempt taxes on the consolidation of State-Owned Enterprises (SOEs) will only apply for three years, specifically until 2029.

“Those buy-sell transactions. For merging, acquisition, we set it to zero.

We give it three years, until 2029,” said Purbaya after holding the quarterly KSSK meeting for Q1-2026 in Jakarta on Thursday (7/5/2026).

After that deadline expires, Purbaya assured that all tax schemes resulting from consolidation will revert to normal.

He also emphasised that income tax (PPh) from SOE business activities will still apply as usual. According to him, only taxes related to consolidation transactions, or streamlining, are exempted.

“Income tax and all that is normal, as usual,” Purbaya stressed.

He emphasised that the tax exemption on consolidation transactions is a form of incentive from the government to make the process efficient and swift. Because, he said, the process incurs significant costs for SOEs.

“If we tax it during those buy-sell transactions, even though it’s for efficiency, the costs become very expensive. To me, that doesn’t make sense. The goal is efficiency,” he explained.

Previously, SOE Ministry Head Dony Oskaria had also stated that the transactions granted tax relief include those in the transformation process or corporate actions such as liquidation, investment, consolidation, and restructuring.

The form of relief in question is the elimination of taxes on transactions related to those corporate actions.

“All taxes related to those transactions, this streamlining transaction, whether merger, liquidation, and so on. So there is no tax, and it’s also regulated in our law, the SOE law,” he added.

Regarding when this regulation will be enacted, Donny said it is just awaiting the issuance of a Government Regulation (PP).

“The Finance Minister has already supported it; the PP will be issued soon.”