News & Insights/Indonesia Regulatory & Tax Updates (2026)
Regulatory & Tax4 min read
Indonesia

Indonesia Regulatory & Tax Updates (2026)

Indonesia's PT PMA framework, risk-based OSS licensing, and tiered corporate tax rates offer a structured pathway for foreign investors — provided capital requirements and VAT obligations are carefully managed.

Corporate Tax

The standard corporate income tax rate is 22%. Publicly listed companies meeting certain conditions benefit from a reduced rate of 19%. SME discounts are also available for qualifying businesses.

VAT

The statutory VAT rate is 12%, with an effective rate of 11% applicable to most goods and services following government relief measures.

PT PMA

Foreign-owned companies (PT PMA) must demonstrate an investment plan of at least IDR 10 billion and maintain paid-up capital of at least IDR 2.5 billion.

OSS Licensing

Indonesia's Online Single Submission system uses a risk-based approach to business licensing, streamlining the process for lower-risk activities while applying greater scrutiny to higher-risk sectors.