Indonesia sets out eligibility for tax penalty relief
A new handbook explains which administrative penalties qualify for relief, while making clear that the underlying tax remains payable.
Indonesia’s Directorate General of Taxes (DJP) has released a handbook explaining how taxpayers can qualify for administrative penalty relief under decision KEP-239/PJ/2026, dated 8 October 2026. The measure allows reductions or waivers for specified penalties rather than cancellation of the tax owed.
The decision draws on Finance Minister Regulation No. 71 of 2026. According to the handbook, taxpayers must meet the relevant requirements and obtain a decision from the director general of taxes to receive relief.
Relief is organised into four categories: tax supervision, audits, collection and the taxpayer database. For collection notices issued before 8 October 2026, one provision allows penalties to be reduced by up to 90 per cent if taxpayers pay 10 per cent of the administrative penalty between 8 October and 31 December 2026.
The DJP acknowledged a limited connection with the Voluntary Disclosure Programme (PPS). The decision covers certain penalties from audits of assets that PPS participants failed to disclose fully, with specific deadlines for assessments and payments. The handbook says this does not create another disclosure programme or tax amnesty, and any resulting tax must still be paid.
Inge Diana Rismawanti, the DJP’s director of tax education, services and public relations, told CNBC Indonesia on 26 October 2026 that the agency’s tax educators had prepared the handbook to guide taxpayers seeking to use the programme.
