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)
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)
The decision is effective from 1 September 2026. (stats.pajak.go.id)
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
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Update Internal Policies: Adjust calendar workflows to avoid late payments during September, since penalty interest is calculated monthly.
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Systems Settings: Ensure your ERP or accounting software uses the correct rate per section of law, especially where multiple penalty provisions may apply.
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Tax Refund Processing: For those claiming refunds, anticipate when refund interest may apply and what rate.
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Monitor Subsequent Decisions: Since this rate applies only for September 2026, expect a new decision for October; cross-check for consistency.
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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.