Indonesia defends global minimum tax despite revenue concerns
The tax authority says even limited additional receipts justify participation in the rules, which Indonesia began applying in 2025.
Indonesia’s Directorate General of Taxes has defended its implementation of the global minimum tax, saying the country should not forgo additional revenue despite concerns about the cost of administering it.
Speaking at the 16th TIF Tax Outlook Seminar on 4 November 2026, international taxation director Dwi Astuti said experts at the International Monetary Fund had criticised revenue expectations for the policy. According to her account of IMF research, the anticipated receipts were overstated, while the administrative burden was too high.
Dwi said the tax authority nevertheless considered even a small increase in tax payments preferable to receiving nothing. Indonesia has applied the global minimum tax since 2025.
The GloBE rules, developed through the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting, aim to ensure that multinational groups within their scope face an effective tax rate of at least 15 per cent on profits in each jurisdiction. A rate below that threshold may trigger a top-up tax.
The rules cover multinational group entities with annual gross revenue of at least EUR750 million in at least two of the four years preceding the year of application.
Dwi also said the policy sought to curb competition between countries to avoid imposing taxes. She noted that Indonesia offers tax holidays allowing a 0 per cent corporate income tax rate, depending on the industry.
