Process of Registering NPWP in Indonesia's New Tax System
Individuals and entities meeting specific tax obligation standards in Indonesia must register for a Taxpayer Identification Number (NPWP). The Directorate General of Taxes officially launched the coretax system on January 1st. Below is the process for registering NPWP through this system: First, click the link coretaxdjp.pajak.go.id to enter the website. On the Portal Wajib Pajak, select New Registration / pendaftaran baru. Choose the taxable status you wish to register for. In the field "Taxable Person with ID Card Number?", select the corresponding answer. If you want to register NPWP using NIK, choose Aktivasi NIK/NIK Activation; otherwise, select Hanya Registrasi/Only Registration. Fill in your personal identity details under Detail Identitas Wajib Pajak, including name, place and date of birth, gender, and marital status. Fill in a valid phone number or email under Detail Kontak Wajib Pajak, complete the verification by entering the verification code, and then upload the required documents to submit.
Nickel Production Increases, Indonesian Government Adjusts Policies to Support Local Development
Prabowo to Crack Down on Illegal Smuggling to Protect State Revenue
Indonesia Raises Retirement Age to 59
China Welcomes Indonesia as Full Member of BRICS
Indonesia's Trade Ministry Continues to Focus on Cracking Down on Illegal Imports This Year
Indonesia's Minister of Trade confirmed that the task force for illegal imports will have its term extended to 2025. The term of the Illegal Import Task Force ended in December 2024, and the Minister of Trade issued a regulation establishing the task force to supervise specific goods subject to import trade regulations. He is not yet certain whether the extension will last until the end of 2025 or another period, and plans to conduct another evaluation to determine the specific duration. According to data from the Ministry of Trade, the task force has achieved significant results, cracking down on illegal imports worth IDR 212.88 billion, which is cumulative data from July to October 2024. The target goods supervised by the task force include textiles, clothing, accessories, ceramics, electronics, and footwear.
Indonesian Official Regulations on VAT Rates Applicable to Different Commodities
The following goods are subject to 12% VAT: luxury residences such as mansions, apartments, condominiums, and townhouses priced at IDR 30 billion or more; hot air balloon groups and navigable hot air balloons, other aircraft without propulsion; firearms and ammunition sets for other firearms (excluding those for state use), bullets and their parts, excluding air rifle bullets; helicopters and other aircraft not subject to 40% import duty, except those used for state purposes or commercial air transport; various firearms and other weapons (excluding state use): cannons, revolvers, and pistols; firearms (excluding artillery, revolvers, and pistols) and explosive devices; luxury cruise ship groups, excluding state use or public transport: vessels primarily designed for passenger transport, all types of cruise ships, excursion boats, and similar vessels (excluding those for state public transport); yachts, except those used for public transport or commercial tourism purposes.
Plan to Increase VAT to 12% in Indonesia Has Been 'Canceled'
As a New Year's gift to the people in 2025, President Prabowo canceled the plan to increase VAT (PPN) from 11% to 12%. After the policy adjustment, the 12% VAT will only apply to luxury goods and services consumed by the wealthy, such as private jets, yachts, and luxury homes. Meanwhile, goods and services essential for daily life will remain at a 0% tax rate, while other non-luxury goods and services will continue to be subject to the current 11% rate. This decision reflects the government's efforts to achieve the welfare of the people and promote national development, aiming to bring peace and prosperity to the populace.
Indonesian Government Forms Task Force to Address Imports Threatening MSMEs
The Coordinating Ministry for Community Empowerment will establish an import task force aimed at monitoring incoming goods to prevent disruption to micro, small, and medium enterprises (MSMEs). The Coordinating Minister stated that the task force is being formed to supervise and propose regulatory reforms to the president, addressing the issue of large-scale imports harming domestic production, especially impacting MSMEs. The current flood of imports has led to a decline in local product volumes due to the influx of untaxed or illegal goods. The task force will also review import-related regulations and will be directly led by a deputy of the coordinating ministry. Various ministries have agreed to form the task force to review regulations and handle excessive imports. A special task force will later be established to involve all parties in limiting imports that endanger MSMEs.
Indonesia's 2025 Minimum Wage Standard Increased by 6.5%
Recently, Indonesia announced that starting from 2025, the minimum wage standards (UMP) in all 38 provinces will be uniformly increased by 6.5%. The core goal of this adjustment is to adapt to the continuous development of the socio-economy and alleviate the pressure of inflation and rising living costs. The adjustment of the minimum wage standard is mainly based on the following key factors: Social and economic development: comprehensive consideration of national economic growth and development trends. Market inflation: to cope with inflation and ensure that workers' purchasing power does not decline. Rising living costs: ensure wages can cover basic living expenses.
Indonesia Reduces Industry Sectors Closed to Foreign Investment from Over a Hundred to Five
Indonesia's Minister of Investment and Downstreaming, among others, stated that investment is key to economic growth, and the government prioritizes increasing high-quality investment flows. President Prabowo targets 8% economic growth. Currently, Indonesia's economic growth is driven by domestic consumption (contributing 53-54%), investment (around 24-35%), government expenditure (about 8%-9%), and imports/exports (each about 2%), and the country is increasingly open to foreign investment, with the negative list of industries greatly reduced. The Chairman of the National Economic Council, Luhut, said that despite global challenges, Indonesia's economy still grew 5.2% last year, with optimistic expectations of reaching 6% in 2024, and will also
Latest Official Fee Standards for Indonesian Visas and Stay Permits
Indonesia has officially implemented the updated Non-Tax State Revenue (PNBP) regulation, revising fees for immigration services such as visa applications, stay permits, and passport issuance. The taxes for Category C and D business visas have generally increased by IDR 1 million (approximately RMB 450), and the B2 business visa on arrival has been abolished. The new regulation takes effect from December 17, 2024. Latest Fee Standards: • 7-day Visa on Arrival: IDR 250,000 • 30-day Visa on Arrival: IDR 500,000 • 60-day Single Entry Visa