Jakarta, June 3 -- The Indonesian government has reassured the public that the 0.5 percent final income tax rate for micro, small, and medium enterprises (MSMEs) is now permanent, following amendments under Government Regulation No. 20 of 2026.

MSMEs Minister Maman Abdurrahman stated that the policy was finalized to provide long-term certainty for business owners, marking a shift from when the incentive was only extended periodically.

"The only difference now is that while extensions were previously limited to one year at a time, it is now open-ended for the coming years-meaning there is no time limit," Abdurrahman said during a press conference in Jakarta on Wednesday.

He emphasized that no changes or increases have been imposed on th...