IPSAR (International Public Sector Accounting Review)

Reviewing the Implementation of the Global Minimum Tax on Tax Incentive Policies in Indonesia

Aisyah Tria Cantikasari — 2026-04-30

The implementation of the Global Minimum Tax (GMT) as part of BEPS 2.0 represents a significant change in the international taxation system. This study examines the implications of the Global Minimum Tax (GMT) on the effectiveness of tax holiday policies in Indonesia, particularly following the implementation of PMK 136/2024. Using a normative legal research method with statutory and conceptual approaches, this study evaluates the mechanisms of the Income Inclusion Rule (IIR) and the Qualified Domestic Minimum Top-up Tax (QDMTT), as well as their impact on the attractiveness of domestic fiscal incentives. The findings indicate that GMT has the potential to reduce the effectiveness of tax holidays when the Effective Tax Rate falls below 15%, thereby necessitating a redesign of incentive policies toward non-rate-based incentives. A comparative analysis with ASEAN countries reveals that regional policy responses are shifting from rate-based competition toward substance-based incentives. This study recommends the optimization of existing incentive instruments, namely investment allowance, research and development super deduction, and accelerated depreciation as alternatives that are more compatible with the GMT framework to maintain Indonesia's investment competitiveness.

Capturing the Potential of Excise Taxation on High-Sodium Foods in Indonesia

Cerdas Parasian Sihombing — 2026-04-30

The Free Nutritious Meals Program (Program Makan Bergizi Gratis/MBG) represents one of the Indonesian government's strategic national policies aimed at improving human capital through nutritional interventions for students. However, the effectiveness of this program is strongly influenced by the dietary consumption patterns of the population, particularly the high intake of sodium that may contribute to various non-communicable diseases. Data from Survei Konsumsi Makanan Individu indicate that the average salt consumption of Indonesians reaches 6.68 grams per day, exceeding the limit recommended by the World Health Organization (WHO) of less than 5 grams per day. Excessive sodium consumption has been shown to correlate with the increasing prevalence of hypertension, cardiovascular diseases, and stroke, which ultimately generate negative externalities in the form of rising national healthcare expenditures. From a fiscal perspective, this condition opens an opportunity to introduce excise taxation as an instrument to control consumption while simultaneously expanding the government’s revenue base. This study aims to analyze the potential for extending excise taxation to high-sodium food products in Indonesia as a mechanism for both consumption control and revenue diversification. The research employs a qualitative approach using a literature review method by examining regulatory frameworks, sodium consumption data, and policy practices implemented in several countries. The findings indicate that high-sodium food products possess characteristics consistent with excisable goods as stipulated in Law Number 39 of 2007 on Excise. A simple simulation suggests that imposing excise taxes on instant noodles and salty snack products could potentially generate approximately IDR 6.6 trillion in annual state revenue while also creating a price signal that encourages the reduction of high-sodium food consumption. Therefore, the extension of excise taxation on high-sodium foods may provide a double dividend in the form of non-communicable disease control and the strengthening of the government’s revenue base

MAPPING SOCIAL ASSISTANCE REGULATIONS IN INDONESIA WITHIN THE SUSTAINABLE DEVELOPMENT GOALS FRAMEWORK

Amrie Firmansyah — 2026-05-23

Social assistance is a key policy instrument for poverty alleviation, inequality reduction, and social welfare enhancement, and it has increasingly been positioned within the broader agenda of sustainable development. This study aims to map social assistance regulations in Indonesia within the Sustainable Development Goals (SDGs) framework to examine the policy position, regulatory direction, and level of integration of social assistance as a sustainable development instrument. This study employs a scoping review approach, analyzing relevant global and national regulations, including the 2030 Agenda for Sustainable Development, national development planning regulations, and sectoral and technical social welfare regulations. The scoping review process is used to identify, classify, and synthesize the characteristics and regulatory focus of social assistance across different governance levels. The findings indicate that social assistance in Indonesia has been normatively and strategically positioned as part of sustainable development, particularly through its integration into long-term and medium-term national development planning frameworks. However, the linkage between social assistance regulations and the SDGs framework at the implementation level remains largely implicit and has not been systematically translated into specific SDG targets and indicators. Existing regulations tend to emphasize administrative governance, delivery mechanisms, and fiscal accountability, while the contribution of social assistance to sustainable development outcomes is not explicitly articulated. These findings highlight the importance of mapping social assistance regulations within the SDGs framework to strengthen policy coherence and support the formulation of social assistance policies that are more effectively integrated with Indonesia's sustainable development agenda.

VAT RESTITUTION ON COAL EXPORTS AND EXPORT DUTIES AS AN OFFSETTING FISCAL INSTRUMENT

Dinda Alfiati Kuncoro — 2026-06-10

The designation of coal as a Taxable Goods through Law Number 11 of 2020 on Job Creation fundamentally altered the Value Added Tax (VAT) mechanism for export-oriented coal mining companies. Because coal exports are subject to a 0% VAT rate, Input Tax consistently exceeds Output Tax, creating a structural overpayment condition that entitles companies to recurring VAT refunds (restitution). This study analyzes the magnitude of VAT restitution following this policy change, quantifies its impact on corporate income tax (CIT), evaluates export duties as a fiscal instrument to offset the resulting revenue pressure on the state, and benchmarks Indonesia's planned export duty rate against international comparators.

Using a descriptive quantitative approach through secondary data analysis, this study examines audited financial statements of four publicly listed coal companies: PT Harum Energy Tbk (HRUM), PT Adaro Andalan Indonesia Tbk (AADI), PT Adaro Energy Indonesia Tbk (ADRO), and PT Indo Tambangraya Megah Tbk (ITMG) for fiscal years 2023 and 2024. Total VAT restitution received increased by 127.7%, from USD 236.76 million in 2023 to USD 539.05 million in 2024. Paradoxically, the Taxable Good designation also raised CIT revenue by USD 118.59 million in 2024 (as Input Tax can no longer be expensed), but the net fiscal impact on the state remains negative at USD 420.46 million. A simulation across three tariff scenarios shows that a 2.5% export duty covers only 31.6% of restitution, while a 5% rate covers 63.2%. The minimum rate required for full fiscal break-even is 7.92%. Unlike Russia, which imposed export duties of 4%–7% and experienced declining competitiveness, Indonesia benefits from zero import tariffs in China and across ASEAN, providing a competitive buffer capable of absorbing a higher export duty without threatening export volumes. Export duties therefore represent a viable multifunctional fiscal instrument, but require tariff calibration that exceeds the 1%–5% range currently under policy consideration.

Keywords: Value Added Tax (VAT), VAT refunds, coal, exports, export duty, corporate income tax.

THE IMPACT OF EXCISE TAX STAMP POLICY AND GDP GROWTH ON THE FINANCIAL PERFORMANCE OF CIGARETTE COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE (A CASE STUDY OF 2016–2024)

Tasya Resinta Dharmawan — 2026-05-23

This study aims to deeply explore the transmission mechanism of the Tobacco Excise Tax (CHT) tariff increase policy on business resilience and profitability across different tiers of the cigarette industry in Indonesia. Employing a qualitative descriptive method, this study analyzes secondary data on four publicly listed companies: PT Gudang Garam Tbk (GGRM), PT HM Sampoerna Tbk (HMSP), PT Wismilak Inti Makmur Tbk (WIIM), and PT Indonesian Tobacco Tbk (ITIC). The selection of the 2016–2024 research period captures two crucial phases: economic stability in the four years prior to the COVID-19 pandemic (2016–2019) and the disruption to post-pandemic recovery phase (2020–2024). This research highlights a phenomena gap between positive national Gross Domestic Product (GDP) growth and the profitability anomaly in the tobacco industry. Qualitative findings indicate that the transmission of the excise tax burden into Retail Selling Prices triggers a structural market shift. Increases in post-pandemic GDP do not reflect equitable purchasing power, thereby driving the downtrading phenomenon. Consequently, Tier 1 issuers (GGRM and HMSP) experience significant profit margin pressure, while Tier 2 and substitute product issuers (WIIM and ITIC) find resilience momentum from this consumer shift. The implication of this research comprehensively maps the structural dynamics of the tobacco industry in responding to the dual pressures of fiscal regulation and purchasing power polarization.