The government has confirmed that Indonesia is ready to implement a global minimum tax in 2025. Yon Arsal, Expert Staff to the Minister of Finance for Tax Compliance at the Ministry of Finance (Kemenkeu), emphasized that this regulation will be a crucial momentum in restructuring fiscal incentive policies in the country. The government is currently formulating a new, more targeted incentive scheme to continue attracting foreign investment while maintaining public purchasing power. "We have issued a Ministerial Regulation (PMK) regarding this, and we are among more than 50 countries that have announced they will implement a global minimum tax," Yon said during an online discussion with the Indonesian Economists Association (ISEI) Jakarta on Tuesday (August 26th, 2025). This regulation refers to Minister of Finance Regulation (PMK) Number 136 of 2024 concerning the Imposition of a Global Minimum Tax Based on International Agreements, which came into effect in the 2025 fiscal year. Under this provision, multinational companies with a consolidated global turnover of at least 750 million euros will be subject to a global minimum tax rate of 15%.
The global minimum tax is part of the second pillar agreement proposed by the G20 and the Organisation for Economic Co-operation and Development (OECD). Currently, more than 140 countries have expressed support for this policy as an effort to prevent cross-border tax avoidance practices. Yon explained that the government has held discussions with various stakeholders, including ministries/agencies, industry associations, and business actors. According to him, several existing fiscal facilities, such as tax holidays (temporary tax exemptions) and tax allowances (tax reductions under certain conditions), are no longer relevant in the era of the global minimum tax. The government is currently formulating a new, more targeted incentive scheme to continue attracting foreign investment while maintaining public purchasing power.
