Tax Holiday Incentive Remains for 2026 Investments, Says

JAKARTA, December 1, 2025 – The Indonesian government will continue the corporate income tax (CIT) reduction facility known as a tax holiday in 2026. Economy Minister Airlangga Hartarto announced the decision at the National Chamber of Commerce and Industry (Kadin) working meeting on Monday.

The tax holiday will remain available to corporate taxpayers that invest up to Rp500 billion over a 5‑ to 20‑year horizon. In addition, the government will keep tax allowance, import duty exemption for electric vehicles, and supertax deduction as part of a fiscal stimulus package to attract long‑term investment.

Airlangga expects the incentives to draw investors, especially in the electric‑vehicle automotive sector, citing BYD’s planned Rp11.2 trillion investment to produce 150,000 electric cars annually. The measures aim to help Indonesia achieve a 2026 economic growth rate above the state budget target of 5.4 %.