Indonesia Should Establish Legal Basis for Advance Ruling

Tax experts argue that Indonesia should establish a legal framework for advance ruling. An advance ruling is a written confirmation from tax authorities on the tax treatment of a specific planned transaction. The comment was made in November 2025.

The regulation should define whether the ruling is binding, set a response time limit, and list the documentation taxpayers must submit. It should also prescribe how the ruling’s outcome is published to ensure transparency. Without clear legal basis, advance ruling may create tax uncertainty.

A proper framework would give taxpayers certainty and strengthen the self‑assessment system. Such certainty is expected to improve compliance and tax administration efficiency. In turn, this could foster a more favorable investment climate and support economic growth.