Indonesia to Exempt Minimum Wage Earners from Income Tax by Raising PTKP

The Indonesian government plans to raise the Non-Taxable Income (PTKP) threshold, exempting workers earning at least the provincial minimum wage (UMP) from income tax. The current PTKP is Rp54 million annually (Rp4.5 million monthly), leaving many in higher-wage regions subject to tax. The new threshold will consider inflation, but specific figures and implementation dates are yet to be announced.