#Job Creation Law

Supreme Court: Proven Tax Crime, Offenders May Be Exempt from Prison Sentences

Through Supreme Court Regulation (PMA) Number 3 of 2025, the Supreme Court regulates that perpetrators of tax crimes who settle the principal tax and tax sanctions may be exempted from imprisonment. Read the full provisions.

Jan 2, 2026

MUC Attorney at Law-Suryacipta, In Collaboration to Hold Webinar on The Government Regulation in Lieu of Law on Job Creation

Feb 13, 2023

The Ambiguity of Omnibus Law after Constitutional Court's 'Half-Hearted' Ruling

The decision of the Constitutional Court which declared the Job Creation law to be conditionally unconstitutional is considered ambiguous and created legal uncertainty.

Dec 9, 2021

The Constitutional Court Rules on The Job Creation Law is Unconstitutional

In addition to declaring temporary unconstitutional, the panel of judges of the Constitutional Court also instructed the government to suspend all strategic and broad-impact policies and be prohibited from issuing new implementing rules.

Nov 26, 2021

VAT on Consignment Transfer vs. Transfer to Intermediary Traders

The Job Creation Law removed the transfer of goods on consignment from the list of transactions that are VAT payable, while the transfer of goods to intermediary traders is still considered VAT payable. Although both have the same nature, the two types of transactions have different interpretations and it can cause problems.

May 17, 2021

Dividend Tax Exemption and Bond Interest Tax Cut Officially Apply

The government officially issued a derivative regulation of the Job Creation Law, concerning the exemption of taxes on dividends and tax cut on bond interest.

Feb 24, 2021

Tax-Free Dividends Mechanism is Similar to Tax Amnesty

Dec 17, 2020

In December 2020, Minister of Finance Sets Administration Sanctions and the Lowest Interest Compensation of 0.53%

The Minister of Finance determines the tax administration sanctions for the period 1 December - 31 December 2020, starting from 0.53% to 1.78%, while the interest compensation is set at an average of 0.53% per month.

Dec 1, 2020

Signed by Jokowi, the Job Creation Law Officially Applies

This signing is done before the deadline for ratification as it should be, which is a maximum of 30 days. Because if it refers to the approval date of the House of Representatives (DPR) on 5 October, the ratification deadline falls on 5 November 2020.

Nov 3, 2020

These General Provisions on Taxation are Overhauled in the Omnibus Law 

 The Minister of Finance is given the authority to set the amount of administrative sanctions in the form of interests and fines higher than the benchmark interest rate (BI 7-Day Repo Rate). 

Oct 8, 2020

Now It's VAT Law Dragged by Omnibus Law on Job Creation

VAT-Registered Persons who have not yet submitted taxable goods or services for export, being able to credit input taxes as long as they meet the crediting requirements according to the Law. 

Oct 7, 2020

Omnibus Law on Job Creation Relaxes Income Tax Provisions

The Job Creation Law (UU Cipta Kerja) also relaxed several clauses in the Income Tax Law (UU PPh), including changing the taxation system to be territorial-based, reducing tax objects, adding the dividend criteria exempted from tax imposition, and flexibility to lower the rate of Income Tax Article 26. 

Oct 6, 2020