Tax Holiday Officially Ends

The government has ended the investment tax holiday, following Indonesia’s implementation of the global minimum tax (GMT) agreed with 139 countries. The incentive officially expired on December 31, 2025. The Finance Ministry is preparing replacement incentives that comply with GMT rules, including Qualified Refundable Tax Credits (QRTC), which can be refunded in cash while maintaining the minimum 15% corporate tax rate. Economists have called for a broader assessment of the tax holiday’s effectiveness as the government develops a new investment incentive framework.