JAKARTA – Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated that the government will carefully assess the implementation of the global minimum tax (GMT) to ensure that the existing tax incentives offered to investors are not disrupted.

This comes following the issuance of the Ministry of Finance Regulation (PMK) No. 136 of 2024 on December 31, 2024. The regulation, which will come into effect for the 2025 tax year, outlines the provisions for implementing the global minimum tax.

“We must first consider the criteria for multinational corporations,” Hartarto said after attending the National Conference of the Indonesian Chamber of Commerce and Industry (Kadin) at the Ritz Carlton Hotel, Thursday (16/1).

He added that the GMT implementation is expected not to interfere with incentives such as the tax holidays already granted by the government. "We don’t want what has been given to be taken advantage of by other countries," he remarked.

Meanwhile, Head of the Fiscal Policy Agency, Febrio Kacaribu, explained that GMT is part of Indonesia’s commitment in the accession process to the Organization for Economic Cooperation and Development (OECD), particularly in the second pillar of international tax policies.

This policy has garnered support from over 140 countries, with more than 40 countries set to start implementing it in the 2025 tax year.

Kacaribu further noted that GMT targets multinational corporations with a minimum global consolidated turnover of EUR 750 million. Its implementation aims to prevent tax avoidance practices through tax havens.

These companies will be required to pay a minimum tax of 15% in the countries where they operate. The policy, he continued, will not affect micro, small, and medium enterprises (MSMEs).

"This initiative aims to minimize unhealthy tax competition or the 'race to the bottom' and create a fairer global tax system," Kacaribu concluded. (DK/ZH)