
Elderly Trend and Tax on Pension Benefits in Indonesia
Recent data show a growing elderly population in Indonesia and the tax rules that apply to pension benefits, relevant for retirees and employers.
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Recent data show a growing elderly population in Indonesia and the tax rules that apply to pension benefits, relevant for retirees and employers.

Indonesia taxes pension benefits only when paid, applying a final PPh 21 rate for lumpâsum payouts and a progressive rate for regular installments.

Indonesiaâs Constitutional Court accepts two materialâtest petitions challenging pension, severance, THT and JHT tax rules as unconstitutional,

1979 UK pension was taxed despite its small size; Thatcherâs reforms introduced taxâdeferral and the EET model, a system now reflected in Indonesia

Article examines Jakarta retirees' JHT cashâout experiences, tax challenges, and government plans to broaden pension coverage amid an aging

Indonesia applies the EET tax model: contributions deductible, payouts taxable; 16 % of workers covered and assets target 60 % of GDP 2045.

On 29 October 2025 IDX held a shareholders meeting and approved a 2026 market-strengthening plan with liquidity targets, listings and two million

Indonesia plans a crossâsubsidy scheme using carbon tax revenue to cut income tax for lowâ and middleâincome earners, easing pressure and acceptance.

PMK 72/2025 expands PPh 21 DTP incentive to 77 tourism KLU codes, effective OctâDec 2025 for staff earning up to IDR 10 million per month.

The Directorate General of Customs and Excise held lectures at universities on 30 October 2025 to raise customsâexcise literacy and deepen

PMK 72/2025 expands the PPh 21 DTP tax incentive to hotels, restaurants, cafĂ©s and tourism, raising employees' takeâhome pay by about $27â$40 monthly.

Ministry of Finance issued PMK 72/2025 listing hotels, night clubs, karaoke as eligible for PPh 21 DTP incentive; UMKM tax extension is being