Indonesia Provides Tax Relief to Disaster-Affected Regions

Tax Penalty Waiver for Affected Taxpayers

The Indonesian Directorate General of Taxes (DJP) under the Ministry of Finance has issued a significant tax relief measure for taxpayers affected by various natural disasters in three major provinces: Aceh, North Sumatra, and West Sumatra. Through Decision Letter Number KEP-251/PJ/2025 dated December 15, 2025, the DJP has decided to waive administrative penalties for late tax obligations.

Natural Disasters Declared as Force Majeure

The decision specifically identifies floods, flash floods, landslides, strong winds, and earthquakes that occurred in these regions as force majeure events. This classification provides the legal basis for granting tax relief to affected taxpayers. The DJP's move is designed to alleviate the financial burden on individuals and businesses impacted by these calamities, allowing them to focus on recovery efforts rather than facing additional penalties for delayed tax payments.

Scope and Implementation of Tax Relief

The tax relief applies to all taxpayers who reside or are based in the affected areas of Aceh, North Sumatra, and West Sumatra. By waiving administrative penalties, the DJP aims to provide much-needed support to these regions as they recover from the devastating effects of the natural disasters. This decision demonstrates the government's proactive approach to supporting economic recovery through fiscal policy measures.