Jakarta Province Tax Incentive for SMEs 2025

The Provincial Government of Jakarta issued Governor Decree No 521/2025 on 10 July 2025, granting tax incentives to micro, small and medium enterprises (SMEs) that operate in temporary premises. The incentive includes reductions in regional levies and waivers of administrative sanctions.

The levy reduction (regional fee collected by the government) applies to temporary micro‑scale locations such as pet‑keeping, ornamental‑plant sites, promotion areas and incubated micro‑business sites. Monthly rates are automatically adjusted through the Online Levy System, with cuts up to 70 % – for example, spaces up to 6 m² now pay IDR 150,000 per month instead of IDR 300,000.

Enterprises with outstanding 2024 levy payments are exempt from fines and interest charges. By lowering operating costs, the measure aims to keep SMEs viable and support Jakarta’s local economy.