# Indonesia tax holiday reforms amid BUMN consolidation

> Live situation record from CLSTR: https://clstr.news/situations/indonesia-tax-holiday-policy-reforms
> Updated: 2026-08-05T07:49:58.000Z. Sources: 18. Developments: 2.

In early August 2026 the World Bank urged Indonesia to phase out its corporate‑income‑tax holiday scheme within one to two years, recommending performance‑based incentives and a broader review of tax incentives to curb overlap, inefficiency and evasion. The same week the Finance Minister announced a three‑year tax exemption limited to merger, acquisition and liquidation activities linked to the consolidation of state‑owned enterprises under the Badan Pengelola Investasi (BPI) Danantara.

Following that policy signal, Danantara Indonesia accelerated the BUMN streamlining programme, using the exemption to reduce the number of state‑owned entities to roughly 250. By mid‑2026 the initiative had already reorganised 274 companies and set a target of 652 eliminations. InfraNexia, Danantara’s telecom‑infrastructure subsidiary, reported first‑half‑2026 revenue of Rp 7.7 trillion, with a 12.7 % rise in wholesale network sales and a 31 % increase from non‑TelkomGroup customers, highlighting expanding digital demand. The Saudi Ministry of Investment’s proposal for a stake in Madinah airport further signals international interest in the reform‑driven restructuring.

Bank Indonesia’s July 2026 data showed foreign‑exchange reserves at US$145.3 billion, a marginal dip of US$0.3 billion from June. While the level remains well above the three‑month import‑coverage benchmark, it underscores the importance of external‑sector resilience as Indonesia pursues selective tax incentives and BUMN consolidation to improve fiscal health and macro‑economic stability.

## Claims

- Indonesia's foreign exchange reserves were US$145.3 billion at the end of July 2026. (corroborated by 5 sources)
- The reserves decreased by US$0.3 billion from US$145.6 billion at the end of June 2026. (corroborated by 5 sources)
- The change was driven by tax and service receipts, issuance of global sovereign bonds, foreign debt payments and rupiah‑stabilisation policy amid global market uncertainty. (corroborated by 5 sources)
- The reserves are equivalent to financing 5.5 months of imports (or 5.3 months when debt payments are included). (corroborated by 5 sources)
- The reserve level exceeds the international adequacy benchmark of roughly three months of imports. (corroborated by 5 sources)
- Net foreign‑portfolio inflows in Q2 2026 were US$8.5 billion, mainly from sovereign bonds (SBN) and Rupiah‑denominated securities (SRBI). (single source)
- The reserves fell from US$156.5 billion in December 2025 to US$144.9 billion in May 2026, a decline of US$11.6 billion. (single source)

## Timeline

### 2026-08-05: Indonesia's foreign reserves dip slightly to $145.3 bn in July 2026

Indonesia's foreign reserves fell to US$145.3 bn in July 2026, down US$0.3 bn from June, driven by tax receipts, bond issuance and debt payments, and still cover 5.5 months of imports.

15 sources. https://clstr.news/cluster/indonesias-finance-minister-purbaya-yudhi-sadewa-grants-tax-holiday-for-bumn-consolidation

### 2026-08-03: World Bank urges Indonesia to end tax holidays, tackle corporate tax evasion

The World Bank recommends Indonesia scrap tax holidays within two years and replace them with performance‑based incentives, while a survey shows about 25% of firms likely evade taxes, especially non‑exporters.

4 sources. https://clstr.news/cluster/world-bank-urges-indonesia-to-end-tax-holidays-tackle-corporate-tax-evasion

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Cite as: Indonesia tax holiday reforms amid BUMN consolidation. CLSTR, https://clstr.news/situations/indonesia-tax-holiday-policy-reforms