Indonesia (ID)
Bali and beyond — Indonesia is a vast tropical archipelago of 17,000+ islands offering affordable living, extraordinary cultural diversity, world-class nature, and a rapidly growing digital economy that attracts digital nomads, retirees, and professionals from around the globe.
2026 Annual Changes — Indonesia
Updated thresholds, benefits, and regulatory changes effective this year.
Key changes for 2026 in Indonesia include the continued expansion of BPJS Ketenagakerjaan coverage requirements, updated provincial minimum wages (UMP/UMK), ongoing Nusantara capital relocation progress, and adjustments to visa policies under the Prabowo administration. The Digital Nomad Visa (E33G) remains active. VAT increase to 12% was deferred by presidential decision. Jakarta's Ganjil-Genap traffic restrictions have been expanded. KITAS application reforms via the new SILINA (Sistem Layanan Izin Tinggal dan Alih Status) digital platform continue to improve processing times.
Key Changes for 2026
| Category | 2026 Value | Previous | Effective Date |
|---|---|---|---|
| Minimum Wage UMP DKI Jakarta 2026 increased by 6.17% per PP No. 49 of 2025 (alpha=0.75 formula) | Rp5,729,876/month (Jakarta UMP 2026, 6.17% increase) | Rp5,396,761/month (Jakarta UMP 2025) | 2026-01-01 |
| VAT Rate Nominal PPN rate is now 12%, but standard goods remain effectively 11% through adjusted tax base calculation (11/12 of value). Luxury goods are subject to the full 12%. Government communications have described standard-goods treatment as "11% effective rate." | Standard goods: effectively 11% (12% nominal rate applied to 11/12 of value). Luxury goods and certain premium services: 12% full rate. Verify applicable rate with your accountant for specific transactions. | 11% (from April 2022) | 2026-01-01 |
| BPJS Kesehatan Premiums Class I, II, III premium rates remain unchanged for 2026 | Class I: Rp150,000; Class II: Rp100,000; Class III: Rp35,000 per person/month | Same rates since 2020 adjustment | 2026-01-01 |
| BPJS Ketenagakerjaan JP Salary Cap JP (Jaminan Pensiun) salary ceiling adjusted per BPJS regulation | Rp11,086,300/month salary ceiling for JP contribution (effective March 1, 2026 — 5.11% increase) | Rp8,939,700/month (2025) | 2026-01-01 |
| Income Tax Top Bracket 35% top bracket (above Rp5 billion annual income) introduced in 2022 remains in force | 35% for income above Rp5,000,000,000/year | Introduced in 2022 via UU HPP | 2022-01-01 |
| Immigration System — SILINA SILINA (Sistem Layanan Izin Tinggal dan Alih Status) digital immigration platform expanded, reducing in-person visits for KITAS extension and address change | Digital KITAS management via silina.imigrasi.go.id | Primarily manual/counter-based processing | 2025-06-01 |
| Bali Tourism Levy Bali Green Levy (Rp150,000 foreign visitor levy) continued under Perda Bali. Revenue used for cultural preservation and tourism infrastructure. | Rp150,000 per international visitor to Bali — payable on arrival | Introduced February 2024 | 2024-02-14 |
| Jakarta Ganjil-Genap Expansion Ganjil-Genap (odd-even vehicle restriction) extended to additional roads in Jakarta and adjusted operating hours under DKI Jakarta Governor regulation | Multiple Jakarta roads during 07:00–10:00 and 16:00–21:00 weekdays | Fewer roads covered in 2025 | 2026-01-01 |
| Nusantara Capital Progress Phase 1 of Nusantara capital development in East Kalimantan continues. Some ministries relocated. Jakarta remains administrative capital for most functions through 2030+. | Presidential Palace functional; selected ministries beginning operations in Nusantara. Jakarta retains economic and commercial capital status. | Only Otorita IKN administrative building operational in 2024 | 2026-01-01 |
| Foreign Worker Minimum Salary Minimum salary requirement for IMTA/KITAS foreign worker endorsement reviewed — remains USD 1,500/month minimum | USD 1,500/month (Rp22,500,000/month at prevailing exchange rate) minimum | USD 1,200/month until 2024 update | 2024-01-01 |
| Digital Economy Tax (PMSE) Continued enforcement of VAT on foreign digital services (Netflix, Spotify, Google, Amazon, etc.) operating in Indonesia | 11% PPN on all digital services consumed in Indonesia by Indonesian residents | Netflix Indonesia PPN compliance since 2020 | 2020-08-01 |
| Pension Retirement Age Transition JP retirement age increased to 59 effective January 1, 2025, continuing the gradual increase schedule toward age 65. | Age 59 for normal JP retirement in 2026 (increased from 57 on January 1, 2025) | Age 57 (before January 2025) | 2026-01-01 |
| E-Commerce Regulations Expanded Permendag on cross-border e-commerce and social commerce regulations — TikTok Shop regulatory framework | Social media platforms cannot directly facilitate product transactions — must use separate e-commerce platform (TikTok Shop separated from TikTok social) | Pre-September 2023: TikTok Shop directly integrated | 2023-10-04 |
| QRIS Cross-Border Payments QRIS cross-border payment expansion with additional ASEAN countries — Singapore, Malaysia, Thailand, Philippines | Tourists can use QRIS from participating ASEAN countries at Indonesian merchants; Indonesians can pay at ASEAN merchant QR codes | Limited QRIS cross-border pilot 2023 | 2024-08-01 |
January Checklist
Actions to take each January when new rates take effect.
- 1
Check new provincial UMP/UMK minimum wages — if employer is Indonesian company, verify wage compliance
- 2
File BPJS Kesehatan premium autopay is current — any rate changes from 1 January
- 3
Review DJP (tax authority) announcements for income tax bracket or rate changes
- 4
Check KITAS expiry date — schedule renewal if expiring within 6 months
- 5
Renew vehicle registration (STNK) and pay annual PKB vehicle tax at Samsat if due
- 6
Pay PBB (land and building tax) by 31 August deadline (note in calendar now)
- 7
Check NPWP status and confirm SPT Tahunan filing deadline preparation (31 March)
- 8
Review Bali Perda updates (Bali provincial regulations) if living in Bali — local regulations change independently
- 9
Update international health insurance policy — review annual limits, renewal terms
- 10
Check imigrasi.go.id for any new visa requirements affecting your nationality or visa type
- 11
Set GoJek GoTagihan or Indomaret autopay for monthly BPJS Kesehatan contributions
- 12
Review employment contract if on fixed-term PKWT — check renewal or conversion to PKWTT
Where to Track Annual Changes
-
Direktorat Jenderal Pajak (DJP): pajak.go.id — tax regulation updates
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Ditjen Imigrasi: imigrasi.go.id — immigration rule changes
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BPJS Kesehatan: bpjs-kesehatan.go.id — health insurance premium and policy changes
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BPJS Ketenagakerjaan: bpjsketenagakerjaan.go.id — employment social security updates
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Kemnaker (Ministry of Manpower): kemnaker.go.id — minimum wage, employment regulations
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Bank Indonesia: bi.go.id — monetary policy, exchange rates, payment regulations
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OJK (Financial Services Authority): ojk.go.id — financial product regulations, insurance, banking
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Jakarta Globe (jakartaglobe.id) and Tempo.co (english.tempo.co) — English-language Indonesia business news
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Expats.id and Indonesian Expat Facebook groups — community reporting of regulatory changes
-
KBRI (Indonesian embassy) newsletters in your home country
Indonesian regulations change frequently — sometimes with short notice. Immigration rules in particular can shift within a few weeks of implementation. Joining expat WhatsApp groups and InterNations chapters is one of the fastest ways to receive peer-reviewed regulatory updates. Official sources (imigrasi.go.id, pajak.go.id) are authoritative but may not always be timely in English. The Jakarta Globe and Tempo English provide good regulatory journalism.
Annual Changes
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