The government has confirmed that the non-taxable income threshold (PTKP) will be raised in 2027, but the change will not take effect immediately in January. Coordinating Minister for Economic Affairs Airlangga Hartarto said this at a press conference at his office in Jakarta on Thursday (5/11/2026). According to Airlangga, inter-ministerial discussions are still ongoing, so implementation will likely come after January 2027.
Key points
- The current PTKP is IDR 54 million per year (around IDR 4.5 million per month) for an unmarried individual taxpayer with no dependants, and it has not changed since 2016.
- The new PTKP amount has not been announced. The increase is planned to take inflation and minimum wages into account.
- Deputy Coordinating Minister for Economic Affairs Drajad Hari Wibowo said the 2027 PTKP figure is still being discussed with the relevant ministries and will be consulted with the House of Representatives (DPR).
- Deputy Minister of Finance Juda Agung also stressed that no final decision has been made.
- The timing, including the possibility of mid-2027, will still be evaluated by the cabinet.
Impact on taxpayers and employers
The PTKP increase is designed as a stimulus to support household purchasing power, particularly for lower- and middle-income workers. If the threshold rises, part of the income currently subject to Article 21 income tax withholding will no longer be taxed, which could increase employees' take-home pay.
For employers, a mid-year change in PTKP could affect monthly Article 21 withholding calculations and the year-end recalculation for the tax year.
What to watch
- No regulation has been issued yet; the applicable PTKP remains IDR 54 million per year.
- HR and payroll teams should monitor the issuance of the official regulation and prepare payroll systems so they can easily adjust to the new PTKP.
Want to make sure your company's payroll system and Article 21 calculations are ready for a PTKP change? Consult Hanna Consulting.
Sources: Kontan · CNBC Indonesia · DDTCNews
