Minister of Finance Regulation (PMK) Number 136 of 2024 establishes the legal and technical framework for implementing the Global Minimum Tax (Pillar Two) regime in Indonesia in accordance with the Global Anti-Base Erosion (GloBE) Rules developed under the OECD/G20 Inclusive Framework. This article examines the regulation’s principal provisions, including its scope of application, the operation … Read more
The relationship between the Global Minimum Tax (Pillar Two) and Transfer Pricing Documentation has become an increasingly important aspect of international tax governance. The issuance of Indonesia’s Minister of Finance Regulation (PMK) Number 136 of 2024 on the Global Minimum Tax and PMK No. 172 of 2023 on the Application of the Arm’s Length Principle … Read more
The Minister of Manpower has enacted Minister of Manpower Regulation No. 11 of 2026 on Labour Inspection Procedures (“MOM Regulation 11/2026”) as the new regulatory framework governing labour inspection procedures in Indonesia, which officially came into effect on 3 July 2026. With the enactment of MOM Regulation 11/2026, Minister of Manpower Regulation No. 33 of … Read more
In carrying out their tax rights and fulfilling their tax obligations, taxpayers may appoint a representative to act on their behalf before the Direktorat Jenderal Pajak (DJP). In response to the continuous development of Indonesia’s tax administration system and the growing need for greater legal certainty, the Government has issued PMK No. 44 of 2026 … Read more
Indonesia: A Large Market That Requires the Right Market Entry Strategy Indonesia continues to offer an increasingly attractive investment landscape, supported by its large domestic market, downstream industrialization agenda, rapidly growing digital economy, and sustained demand for financing and advanced technology. However, these opportunities are accompanied by the need to understand Indonesia’s licensing framework, business … Read more
Transfer Pricing Documentation (TP Doc) is one of the tax administration obligations for Taxpayers who conduct transactions with related parties. The preparation of TP Doc aims to demonstrate that the applied transfer pricing complies with the Arm’s Length Principle (ALP), ensuring that affiliate transactions are conducted as if they were transactions between independent parties. With … Read more
PSAK 118 (IFRS 18) introduces significant changes in the presentation of the statement of profit or loss in a more structured and transparent way. The standard improves comparability and the quality of information for investors and stakeholders. Key changes include classification of income and expenses and more consistent subtotals. Its implementation affects how companies communicate … Read more
PSAK 118 is an accounting standard designed to enhance the quality, transparency, and comparability of financial statements through a more structured presentation and disclosure framework. The standard requires classification of income and expenses into operating, investing, financing, tax, and discontinued operations categories, along with consistent presentation of key performance subtotals. It also strengthens aggregation and … Read more
PSAK 118, effective 1 January 2027, replaces PSAK 201 and restructures financial statement presentation. It classifies income and expenses into operating, investing, financing, tax, and discontinued operations categories. The standard requires consistent subtotals to improve comparability across entities. It also introduces Management-Defined Performance Measures (MPM) disclosures for transparency. Its implementation affects all industries, including investment … Read more
The evolution of financial reporting in the Indonesian insurance industry continues with the introduction of PSAK 118 (IFRS 18), effective from 1 January 2027 as a new standard on financial statement presentation and disclosure. Unlike PSAK 117, which focuses on insurance contract measurement, PSAK 118 emphasizes how financial performance is presented and communicated to users … Read more
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