Indonesia Finance Minister denies new taxes on rental properties

Finance Minister Purbaya Yudhi Sadewa has clarified that the Indonesian government has issued no specific orders to target property rental businesses or rental house owners with new taxes. He emphasized that current taxation follows existing regulations, describing the situation as “business as usual,” where income from property rentals remains subject to standard Income Tax (PPh).

The Directorate General of Taxes (DJP) also confirmed that there are no specific work programs planned for 2027 that target rental property owners. The recent public concern reportedly stemmed from discussions during the 2027 State Budget Bill (RUU APBN) forum regarding the strengthening of the tax base and increasing taxpayer compliance, which included mentioning property rental income as an existing taxable object.