Government Considers Global Minimum Tax Exemption for SEZs

JAKARTA. The government is considering exempting companies in Special Economic Zones (SEZs) from the implementation of the global minimum tax rules.

According to Bisnis.com, this was conveyed by the Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, in Jakarta on Tuesday (9/9).

For context, the global minimum tax provision is regulated under Minister of Finance Regulation (PMK) Number 136 of 2025.

The regulation serves as Indonesia’s ratification of the Global Anti-Base Erosion (GLoBE) Rules issued by the OECD/G20.

Under these rules, multinational companies with gross revenues exceeding EUR 750 million are subject to a minimum effective tax rate of 15%.

If the effective tax rate applied is below that threshold, a Top-Up Tax mechanism, or additional tax, will be imposed.

However, according to Susiwijono, applying the global minimum tax to companies in SEZs may negatively affect Indonesia’s investment competitiveness.

This concern arises especially as several other countries are already offering attractive tax incentives to attract investors to their SEZs.

These countries include Thailand, Malaysia, Vietnam, the Philippines, and India.

The tax incentives offered by these countries vary, ranging from reduced income tax rates to full tax holidays for a certain period. (ASP/KEN)