Finance Minister Sri Mulyani Indrawati said her side would continue to carry out tax reforms. One of the reform programs, she added, was to increase the personal or individual income tax rate or PPh OP.

“We will also adjust the rate and bracket of PPH OP. The rate hike for wealthy individuals is not too big, only from 30 to 35 percent,” said Sri in a hearing with the Commission XI of the House of Representatives (DPR) on Monday, May 24, 2021.

She explained the changes would only be applied to individuals whose income above Rp5 billion per year. “Only very few Indonesians are listed on this group,” Sri added.

According to her, the tax bracket and the rate for the majority of Indonesians were not changed.

She previously noted that tax reform was an inseparable part of the tax reform program that was launched in 2017. “With a focus on aligning the taxation system to comply with best practices and be able to anticipate the dynamics of the socio-economic factors in the medium to long term,” said the minister in a plenary meeting with the DPR on Thursday, May 20.

Sri Mulyani also said the reform was carried out to create a healthy and fair tax system. “The tax reform includes two aspects of improvement: administrative and policy aspects,” she said.

Source : https://en.tempo.co/read/1465437/sri-mulyani-to-increase-tax-for-rich-indonesians-to-35