



The Indonesian Government plans to raise or adjust the Non-Taxable Income Threshold (PTKP) starting in 2027.
Coordinating Minister for Economic Affairs Airlangga Hartarto said the adjustment is needed.He said the current PTKP threshold has not kept up with inflation.
DGT Prepares Several Adjustment Scenarios
In response to the plan, Director General of Taxes Bimo Wijayanto said the DGT prepared several scenarios.
These scenarios adjust the PTKP threshold.
These scenarios were sent to the Directorate General of Economic and Fiscal Strategy (DJSEF).
They will be discussed further with the Government.
Therefore, although the adjustment plan has already been prepared, the amount of the potential increase has not yet been determined. The final decision is still subject to further government discussions.
Will the PTKP Adjustment Affect Tax Revenue?
According to Bimo Wijayanto, an increase in the PTKP threshold is not expected to significantly disrupt tax revenue.
This is because Indonesia uses a progressive income tax system. This means that higher income leads to a higher tax rate.
Under this system, individuals with higher incomes will continue to contribute the largest share of personal income tax revenue.
What Does This Mean for Taxpayers?
In short, the PTKP threshold may be increased in 2027 as part of an adjustment to inflation.
However, it is important to note that we have not yet determined the amount of the increase or made the final decision. DGT has prepared several scenarios, but the final decision is still awaiting further government discussions.
So, don’t get the information wrong: the PTKP threshold has not officially increased yet. The Government is currently still discussing and preparing possible scenarios for 2027.


