JAKARTA - The Ministry of Finance (Kemenkeu) has officially issued Minister of Finance Regulation (PMK) Number 1 of 2026 which re-regulates the tax provisions in the restructuring of State-Owned Enterprises (BUMN).
This regulation will be implemented on January 22, 2026 and aims to strengthen tax policy support for the BUMN restructuring process.
In its consideration, the policy states that adjustments to tax policies are necessary to support the transformation and achievement of SOEs' missions.
"That in order to support the transformation of SOEs and the achievement of the mission of SOEs through SOE restructuring, it is necessary to adjust the policy in the field of taxation regarding the use of book value for the transfer and acquisition of assets in the context of mergers, mergers, expansions, or acquisitions of businesses," wrote the consideration of the policy, quoted Sunday, January 25.
This PMK also expands the definition of SOEs as stated in Article I number 135, namely that the definition does not only include business entities whose majority of capital is owned by the state through direct participation, but also entities that have state privileges even without direct majority shareholding.
In addition, the government added a new business expansion mechanism in Article 392 paragraph 7, so that this provision allows the transfer of part of the assets to an existing business entity without having to establish a new entity, including a joint scheme between expansion and merger in one series of transactions.
In addition, another important change is the opening of the option to use the book value in the acquisition process through the transfer of shares.
Through this latest regulation, takeovers that result in ownership of more than 50 percent of shares or management control can use the book value scheme, as long as it is not carried out through a sale or exchange of assets and obtains approval from the Ministry of SOEs.
This PMK also contains a transitional provision (grandfathering) which provides protection to taxpayers who have obtained approval for the use of book value before this regulation is in effect, as stipulated in Article 405 paragraph 4.
With this provision, the approval that has been granted will not be subject to re-assessment based on market value if further restructuring is carried out, as long as the business continuity requirements are met.
On the other hand, the government has set the validity of this policy for three years. The implementation evaluation will be carried out by the Directorate General of Taxes (DJP) together with the Directorate General of Economic and Fiscal Strategy (DJSEF) of the Ministry of Finance.
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