Indonesia to reduce tariffs, ease trade barriers in US trade deal
Indonesia and the US have reached a trade agreement that eliminates tariffs on over 99% of US goods and reduces non-tariff barriers. In return, the US lowered tariffs on Indonesian products to 19%, alongside significant purchases of US jets, energy,
See MoreIndonesia: Chief Economic Minister says 19% US tariff may take effect before 1 August
Trump imposed a 19% tariff on Indonesian goods as part of a new trade agreement, effective 1 August Indonesia's Chief Economic Minister, Airlangga Hartarto, announced on 21 July 2025 that the 19% tariff on Indonesian goods entering the US could
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US: Trump imposes 19% tariff on Indonesia after trade talks
The trade agreement imposes stricter penalties for transhipment and Indonesia’s commitment to purchasing 50 Boeing jets and USD 19.5 billion in US energy and agricultural products. US President Donald Trump announced a 19% tariff on Indonesian
See MoreIndonesia mandates income tax withholding by e-commerce and online platforms
The regulation introduces income tax withholding requirements for both domestic and foreign e-commerce and online marketplace operators. Indonesia's Ministry of Finance announced Regulation No. 37 of 11 June 2025 (PMK37/2025) on 14 July 2025,
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Indonesia proposes tariff cuts, USD 500m wheat purchase in talks with US
Indonesia has proposed reducing import duties on US goods to nearly zero and committing to purchasing USD 500 million worth of US wheat in ongoing tariff negotiations. Indonesia's Coordinating Minister for Economic Affairs, Airlangga Hartarto,
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Indonesia: Tax cuts lead to high palm oil exports
Indonesia's palm oil exports surged 62.2% in February 2025, reaching 2.06 million metric tons, the highest in four months, fueled by a reduction in export taxes. Palm oil is a crucial component in food products, cosmetics, and household items. It
See MoreIndonesia: Core Tax Administration System (CTAS) comes into effect
Indonesia’s Regulation No. 81 of 2024, which implements the Core Tax Administration System (CTAS), went into effect on 1 January 2025. CTAS is the Directorate General of Taxation's (DGT) comprehensive system streamlining key tax administration
See MoreIndonesia updates CRS participating and reportable jurisdictions for 2025
Indonesia's Directorate General of Taxes has published Announcement No. 1/PJ/2025 on 24 January 2025, listing the participating and reportable jurisdictions for the 2025 automatic exchange of financial account information under the Common Reporting
See MoreIndonesia: President announces 12% VAT limited to luxury goods, services
Indonesia’s President has announced that the VAT rate will increase from 11% to 12%, starting 1 January 2025. However, the VAT increase will only be applicable to luxury goods and services like private jets, yachts, cruise ships, and luxury
See MoreIndonesia introduces regulations for Pillar Two global minimum tax
Indonesia's Ministry of Finance has introduced Regulation No. 136 of 2024, implementing Pillar Two global minimum tax rules in the country. The regulations apply to MNE groups with annual consolidated revenue of at least EUR 750 million in two of
See MoreIndonesia announces relief to ease 2025 VAT hike impact
Indonesia’s government has announced a relief package to mitigate the effects of the upcoming VAT increase to 12%, set to take effect on 1 January 2025. Earlier, Indonesia’s Finance Minister, Sri Mulyani Indrawati confirmed that the VAT rate
See MoreIndonesia publishes guidance on joint operations tax
Indonesia’s Ministry of Finance introduced Regulation No. 79 of 2024 (PMK 79) regarding the tax treatment of joint operations on 28 October 2024. The joint operations are classified into two categories based on their tax requirements: those
See MoreIndonesia to raise VAT rate on luxury goods
Indonesia’s President Prabowo Subianto has approved a plan on 6 December 2024 to increase the value-added tax on luxury goods by one percentage point to 12% in 2025, according to Sufmi Dasco Ahmad, the deputy speaker of parliament. Starting 1
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Philippines plans to revise tax treaties with Indonesia, Malaysia, Singapore
The Philippines government is reportedly planning to enter into negotiations to revise the 1981 tax treaty with Indonesia, the 1982 tax treaty with Malaysia, and the 1977 tax treaty with Singapore. The agreement between the Philippines and
See MoreIndonesia to implement planned 12% VAT rate increase in 2025Â
Indonesia's Finance Minister, Sri Mulyani Indrawati, has confirmed that the country will increase its standard VAT rate from 11% to 12%, effective 1 January 2025. The VAT adjustment aligns with the nation's Tax Regulation Harmonization Law,
See MoreIndonesia extends tax holiday for key industries, adapts global minimum tax
Indonesia has issued Regulation No. 69 of 2024, extending the tax holiday incentives for pioneer industries as outlined in Regulation No. 130/PMK.010/2020. Regulation No. 130/PMK.010/2020 replaces Regulation No. 150/PMK.010/2018 and extends
See MoreIndonesia: Central Bank lowers interest rate, first cut in three yearsÂ
The Board of Governors of Indonesia’s Central Bank (Bank Indonesia) lowered the interest rate by 0.25% to 6.00% yesterday, 18 September 2024. The central bank also reduced the Deposit Facility (DF) rate and Lending Facility (LF) rate by 0.25%
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Latvia considering signing tax treaty with Indonesia
Latvia's Ministry of Foreign Affairs issued a release expressing its interest in signing an income tax treaty with Indonesia. Officials from Latvia and Indonesia met on 5 September 2024, during which both parties ​​discussed bilateral
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