Home Publication & Consultation News
News

Amid Economic Slowdown, Government Confirms Global Minimum Tax Implementation

Taxindo Prime Consulting
Friday, September 12, 2025 | 15:31 WIB
00:00
Optimized with Google Chrome
Amid Economic Slowdown, Government Confirms Global Minimum Tax Implementation
The latest economic reports indicate a slowdown, reflected in declining retail sales and weakening consumer confidence. In response, the government is preparing various strategies, ranging from new investment incentives to a firm commitment to implementing the global minimum tax. These upcoming policies are expected to play a crucial role in maintaining stability while enhancing Indonesia’s economic competitiveness.

Signs of an economic slowdown in Indonesia are evident from falling retail sales and declining consumer confidence in July 2025. This trend is reinforced by contractions in Value-Added Tax (VAT) and Corporate Income Tax (CIT) revenues, signaling that both consumer activity and corporate performance remain under pressure. Such conditions present a serious challenge for the government in sustaining economic growth.

Despite these domestic challenges, the government has taken a firm stance on international tax policy. The Ministry of Finance confirmed that the implementation of the global minimum tax (GloBE) will proceed as planned, as part of Indonesia’s commitment to combating tax avoidance by multinational corporations. Without adopting this rule, Indonesia risks losing potential tax revenues to other jurisdictions.

As a consequence of the global minimum tax framework, the government is studying international tax incentive models to design alternatives to the current tax holiday scheme. The goal is to maintain Indonesia’s investment appeal without undermining tax revenues—by transforming Corporate Income Tax incentives into other forms of support that remain compliant with GloBE requirements.

This situation clearly illustrates the dual track of fiscal policy the government is pursuing. On one hand, it faces domestic challenges stemming from economic slowdown, as reflected in weaker VAT and CIT revenues and declining retail activity. On the other hand, it is demonstrating a strong commitment to adapting to global tax standards, as shown by the decision to move forward with the global minimum tax. This measure will significantly narrow the opportunities for tax avoidance by multinational companies. To balance this policy, the government is working to design competitive tax incentives that remain aligned with international rules.

Today’s economic dynamics highlight the need for the government to balance domestic challenges with international commitments. The slowdown in the domestic economy demands swift responses, while the implementation of the global minimum tax underscores Indonesia’s seriousness in restructuring its tax system. The government’s success will depend on its ability to craft effective policy packages that stimulate the economy, safeguard tax revenues, and remain compliant with global standards.



Sources

Article More Details
Article
March 16, 2026 • Taxindo Prime Consulting | Lilik F Pracaya, Ak., CA., ME., BKP (C)

Comprehensive Guide to VAT on Export of Taxable Services and PEJ Format in the Coretax Era
Article
March 11, 2026 • Taxindo Prime Consulting | Lilik F Pracaya, Ak., CA., ME., BKP (C)

The Death of Expertise: Why "Google Graduates" and AI Users Feel Smarter Than Real Experts
Article
March 02, 2026 • Taxindo Prime Consulting | Arya Hibatullah - Lilik F Pracaya, Ak., CA., ME., BKP (C)

Term of Reference (TOR) in Focused Tax Audits in the Coretax Era
Decision More Details
Decision
April 04, 2026 • Taxindo Prime Consulting | Adv. Muhammad Faiz Nur Abshar, S.H. - Lilik F Pracaya, Ak., CA., ME., BKP (C)

Winning Against IDR 3.8 Billion VAT Correction: Judges Cancel Account Receivable Assumption Without Tax Invoice Evidence

Tax Court Decision | PPN | Appeal | Fully Granted

PUT-002998.16/2024/PP/M.XA Of 2025 – 24 September 2025

Decision
April 04, 2026 • Taxindo Prime Consulting | Adv. Muhammad Faiz Nur Abshar, S.H. - Lilik F Pracaya, Ak., CA., ME., BKP (C)

Rejecting the DJP's Formal Reasons: The Panel of Judges Granted the Taxpayer's Appeal Against Article 26 Income Tax Thanks to Valid DGT-1 Evidence

Tax Court Decision | Income Tax Article 26 (Non-Final) | Appeal | Partially Granted

PUT-003062.13/2024/PP/M.IA Of 2025 – 24 September 2025

Taxindo Prime Consulting (TPC) is a firm specializing in tax, accounting, business, and business law consulting.
Taxindo Prime Consulting (TPC) is established as a trusted strategic partner, providing comprehensive solutions in tax consulting, accounting, business development, and business law. Driven by a commitment to integrity and professionalism, TPC is dedicated to delivering more than just standard consultation; we provide education, tactical advice, and concrete solutions. Our services are meticulously designed to analyze and resolve clients' tax and business challenges with objectivity, in-depth insight, and full independence, ensuring both regulatory compliance and long-term business sustainability.
View More
OFFICE
Mega Plaza Building 12th Floor
Jl. H.R. Rasuna Said Kav C-3 Jakarta 12940

Phone :
+62 21 521 2686
+62 817 001 3303

Email :
info@taxindo.co.id
Copyright © 2026 Taxindo Prime Consulting

All content on this website is provided solely for general informational and educational purposes. This information is not intended as a substitute for professional tax advice or consultation specific to your situation. We strongly encourage you to contact our team of consultants directly to receive appropriate guidance and advice.
Taxindo Prime Consulting
Tax and Transfer Pricing Calculator
Tax Calendar
×
Newsletter