Politics · Indonesia · 1 hr ago
Indonesia Says Microbusinesses With Turnover Up to Rp500 Million Owe No Tax
Indonesia's small-business minister Maman Abdurrahman says microbusinesses do not owe tax on annual turnover up to Rp500 million.
He made the clarification in Jakarta after remarks by Kadin Indonesia advisory board chairman Hashim Djojohadikusumo.
The exemption applies across Indonesia and covers businesses such as barbers, massage therapists and food stalls, Maman said.
For businesses with annual turnover up to Rp4.8 billion, the tax rate is 0.5%, which Maman described as a tax incentive.
He said some businesses earning Rp10 billion to Rp20 billion split their companies to appear below the Rp4.8 billion threshold and qualify for the incentive.
Maman said small operators are not being targeted, and the clarification addresses how the tax rules apply to them.
Indonesia’s microbusiness minister says businesses with annual turnover of up to Rp500 million do not owe tax.
Maman Abdurrahman said the rule applies throughout Indonesia and includes businesses such as barbers and massage services.
He said businesses with annual turnover reaching Rp4.8 billion receive a tax rate of 0.5%.
Maman said some larger businesses split their companies to make their turnover appear below Rp4.8 billion and qualify for the incentive.
- Who
- Microbusinesses with annual turnover of up to Rp500 million. Minister Maman Abdurrahman explained the rule.
- What
- They do not owe tax, according to Maman.
- When
- Maman made the comments on Tuesday, 3 November 2026.
- Where
- The comments were made in South Jakarta. Maman said the rule applies throughout Indonesia.
- Why
- Maman was clarifying remarks by Hashim Djojohadikusumo and said the rule was intended for small businesses, not larger firms splitting their companies to qualify.
This story does not have two clearly opposing sides.
Maman made his comments at the Ministry of Micro, Small and Medium Enterprises office in South Jakarta.
Detik published its report on Maman’s clarification.
- Turnover threshold
- Up to Rp500 million per year
- Monthly equivalent
- About Rp40 million
- Tax rate
- 0.5% for businesses with annual turnover reaching Rp4.8 billion
- Larger businesses cited
- Rp10 billion to Rp20 billion in turnover
- Location of comments
- Ministry of Micro, Small and Medium Enterprises office, South Jakarta
What people are saying
Do massage therapists fall within that figure? Do they earn more than Rp500 million a year? No. Barbers? About that much? No. Food-stall owners? Do they fall within it? No. So what I mean is, let's not misinterpret this.
It should not be misinterpreted as if our fellow food-stall owners here and there are being chased down. No. That is not possible. I don't think we are that extreme.