The Indonesian Ministry of Finance Speaks Out on House Members’ Taxes

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The Directorate General of Taxes (DGT) of the Ministry of Finance has released information regarding the absence of tax exemptions for members of the House of Representatives (DPR), state officials, civil servants (ASN), members of the Indonesian National Armed Forces (TNI) and the Indonesian National Police (Polri), and judges.

In a post on the Instagram account @ditjenpajakri, the DGT stated that the salaries and allowances of state officials, ASN, TNI/Polri, and judges are subject to tax and deposited directly into the state treasury, as is the case in the private sector.

“All additional income outside of salaries and allowances sourced from the State Budget (APBN/APBD) must also be paid by the individual concerned and reported in the Annual Tax Return (SPT),” reads the DGT post on Wednesday (August 27, 2025).

Furthermore, the DGT stated that Income Tax (PPh) payments on salaries and allowances sourced from the State Budget (APBN/APBD) are made through a mechanism that is directly calculated and deposited into the state treasury.

“Therefore, the income received by state officials and civil servants constitutes net income after tax,” as stated in the DGT’s post.

Referring to Minister of Finance Regulation No. 262/PMK.03/2010 concerning Procedures for Withholding Article 21 Income Tax for State Officials, Civil Servants, Members of the Indonesian National Armed Forces (TNI), Members of the Indonesian National Police (Polri), and Retirees on Income Tax Charged to the State Budget or Regional Budget, Article 21 Income Tax is indeed borne by the government.

Article 2 of PMK 262/2010 states that Article 21 Income Tax owed on fixed and regular monthly income charged to the State Budget or Regional Budget is borne by the government at the expense of the State Budget or Regional Budget.

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