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Indonesia implements new industrial protections and tax regulations
Indonesia is implementing several economic and regulatory shifts across various sectors. The Ministry of Industry and the Indonesian Chamber of Commerce and Industry (Kadin) are advocating for selective import restrictions on goods that can be produced domestically to protect local manufacturers and enhance national competitiveness.
In the digital economy, the Directorate General of Taxes has begun collecting Article 22 Income Tax (PPh 22) through major marketplaces, including Shopee, Tokopedia, and Blibli, effective October 1, 2026. This move aims to increase tax compliance among digital merchants by integrating tax obligations directly into transactions.
In the mining and energy sectors, the Indonesian Coal Mining Association (APBI) is reviewing new regulations requiring mining permit holders to prioritize local service contractors. Additionally, Indonesia Resources Studies (IRESS) has proposed that coal domestic market obligations (DMO) should exclude private smelters to ensure sufficient supply for public electricity needs.
Other notable developments include the government's plan to introduce a 6% subsidized mortgage (KPR) rate for workers earning up to Rp 17 million per month by 2027, and calls from the Ministry of Energy and Mineral Resources for local governments to allocate groundwater tax revenue toward environmental conservation.
Entities
Indonesia · Indonesia Resources Studies · Indonesian Coal Mining Association · KADIN Indonesia · Ministry of Energy and Mineral Resources · Ministry of Industry of Indonesia · Muhammad Sarmuji · Saleh Husin
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] Kadin Indonesia is urging the government to implement selective import restrictions on products that can already be produced domestically. ekbis.harianjogja.com
- [● 3 SOURCES] Import regulations must not hinder the import of raw materials and capital goods that domestic producers cannot yet fulfill. ekbis.harianjogja.com
- [● 3 SOURCES] Import controls should be implemented alongside the resolution of investment barriers to increase domestic production capacity. ekbis.harianjogja.com
- [● 3 SOURCES] Protection should focus on products that domestic industries can already supply in terms of both quality and quantity. ekbis.harianjogja.com