Apindo Positively Welcomes Government's Commitment Not To Taxes In 2026

JAKARTA The Indonesian Employers' Association (Apindo) welcomes the government's commitment through the Ministry of Finance of the Republic of Indonesia, which ensures that there will be no implementation of new tax rates or tax rates increases that already exist in order to maximize state revenues by 2026.

Chairman of Apindo Shinta W. Kamdani revealed that for the business world, the partiality and certainty of tax policies are important factors in maintaining an investment climate, business stability, and encouraging economic growth.

"With a focus on optimizing tax collection through increasing compliance and improving compliance mechanisms, APINDO considers this step to be more appropriate than adding to the burden on the business world and society with new taxes and increasing existing tax rates," he said in his statement, Sunday, September 7.

Shinta said that her party also supports the government's efforts to expand the tax base by mapping out economic shadow (economic activity that is not officially monitored by tax authorities), improving the quality of tax administration, and improving services to taxpayers so that compliance increases voluntarily.

He emphasized that the business world is in principle ready to collaborate with the government to ensure that the state revenue target can be achieved without reducing competitiveness and business sustainability.

Previously, he said that APINDO also provided a number of constructive inputs in the taxation sector, especially regarding tax intensification and extensification, which must be carried out fairly and create the same level of play of field.

Shinta added that especially for taxpayers who have complied, increased efficiency and certainty in the tax restitution process, which is very much needed by the business world to maintain liquidity and encourage the wheels of the national economy.

He also emphasized the need for special attention to reduce pressure on labor-intensive sectors, especially the tobacco food, beverage and products industry, which is currently facing a double burden from plans to increase excise rates and apply new excise.

According to him, this labor-intensive sector is not only an important contributor to state revenue, but also the main support for job stability.

If the policy of increasing and implementing new excise is carried out without considering the real conditions of labor-intensive industries, the risk of weakening competitiveness and the erosion of job opportunities will be even greater. In fact, this sector has supported state revenues and absorbed millions of workers," explained Shinta.

Furthermore, Shinta hopes that the policy of not increasing taxes and taxes will also include excise duty, considering that excise tax revenues are also classified as tax revenues.

In addition, he said that the business world encourages incentives for labor, energy, and logistics that are more in favor of labor-intensive sectors.

He added that the proposal includes accelerating VAT restitution, LWBP electricity discount scheme, lowering industrial gas prices, renewable energy incentives, credit financing support, to expanding coverage from PPh 21 borne by the government (DTP) as well as other fiscal and non-fiscal incentives.

According to him, this comprehensive support is believed to provide new breaths for labor-intensive industries, strengthen business resilience, and maintain national job stability amid global dynamics and domestic pressure.

He conveyed that with a consistent, applicative, and effective implementation policy, APINDO believes optimizing state revenues can go hand in hand with increasing the business climate and creating jobs in the midst of dynamic situations.