Tax chief says Indonesia’s tax-free threshold already high

Director General of Taxes Bimo Wijayanto said Indonesia’s non-taxable income threshold, or PTKP, is already relatively high, amid talk of an adjustment in 2027. In a briefing in Bogor on Thursday, he said Indonesia’s PTKP is equal to 67 percent of GDP per capita and about seven times the poverty line, making it high compared with OECD and G20 countries. Bimo said fiscal policy formulation falls under the Directorate General of Economic and Fiscal Strategy at the Finance Ministry, while the Directorate General of Taxes prepares the data and tax-collection administration. He said the tax office is ready to review the issue if instructed by the Coordinating Ministry for Economic Affairs and the Finance Ministry. Previously, Airlangga Hartarto said the PTKP adjustment would not apply in January 2027 because the discussion has not yet been completed.