Compliance
Compliance Essentials for Indonesia’s New Interest Rates on Tax Penalties (Sep 2026)
With Indonesia adjusting the interest base rates used for administrative tax penalties and interest refunds in September 2026, businesses and individuals must update their compliance calendar.
By NomadicTax Research Team • 5 min read • September 10, 2026
## What Changed: Ministerial Decision 40/MK/EF.2/2026
For the period **1–30 September 2026**, Indonesia set new rates under **Keputusan Menteri Keuangan (Decision of the Minister of Finance) No. 40/MK/EF.2/2026**. These rates serve as bases for:
- **Administrative penalty interest**, per tax code provisions (e.g., late filing, underpayment);
- **Interest return payments** to taxpayers (e.g., refunds). ([stats.pajak.go.id](https://stats.pajak.go.id/id/peraturan/tarif-bunga-sebagai-dasar-penghitungan-sanksi-administratif-berupa-bunga-dan-pemberian-58?utm_source=openai))
Key rates per month include:
- For Penalty under Pasal 19 (sections 19(1), 19(2), 19(3)): **0.60%**
- Other penalty/interest sections vary up to **2.27%** depending on the article under UU KUP (General Tax Provisions and Procedures). ([stats.pajak.go.id](https://stats.pajak.go.id/id/peraturan/tarif-bunga-sebagai-dasar-penghitungan-sanksi-administratif-berupa-bunga-dan-pemberian-58?utm_source=openai))
The decision is **effective from 1 September 2026**. ([stats.pajak.go.id](https://stats.pajak.go.id/id/peraturan/tarif-bunga-sebagai-dasar-penghitungan-sanksi-administratif-berupa-bunga-dan-pemberian-58?utm_source=openai))
---
## Who Needs to Pay Attention
- Businesses with **monthly tax obligations**—especially **value-added tax (VAT)**, withholding tax, and corporate income tax—where late payments or compliance failures incur penalties.
- Tax consultants, accounting teams updating internal accounting systems to handle the new interest rates.
- Auditors & advisors advising clients on estimates for tax liabilities, cash flow planning, and potential refund timelines.
---
## Actionable Steps for Ensuring Compliance
1. **Update Internal Policies**: Adjust calendar workflows to avoid late payments during September, since penalty interest is calculated monthly.
2. **Systems Settings**: Ensure your ERP or accounting software uses the correct rate per section of law, especially where multiple penalty provisions may apply.
3. **Tax Refund Processing**: For those claiming refunds, anticipate when refund interest may apply and what rate.
4. **Monitor Subsequent Decisions**: Since this rate applies only for September 2026, expect a new decision for October; cross-check for consistency.
5. **Cost Estimation**: When projecting potential penalties or refunds, use newest rate to avoid surprises.
---
## Example Scenario
Suppose your company owes a late payment under **Pasal 13(2)** (one of the higher penalty sections). For September 2026, the rate is **1.85% per month**. If the unpaid tax amount is **IDR 100 million**, the estimated penalty interest for one month would be around **IDR 1.85 million**.
Likewise, if you’re due a refund under sections where interest applies (e.g., Pasal 11(3)), the refund may accrue interest at **0.60%** per month for that period.
---
## Practical Tips
- Prioritize high-risk delays during September; consider paying in advance or requesting extensions where feasible.
- Retain documentation of any rescheduling or extension approvals from tax authorities.
- Reconcile your books at month-end using new rates to compute liabilities or expected refunds accurately.
- Consult a tax professional if multiple sections apply, as some provisions overlap with different base rates.
**Bottom-line**: With Indonesia's monthly resets of such rates, especially for administrative penalties, the margin for error is slim. Being proactive in calendar planning and system accuracy can prevent avoidable costs.