The government’s plan to tighten the rules governing the 0.5 percent final income tax for micro, small and medium enterprises (UMKM) marks a decisive shift in Indonesia’s tax policy. At first glance, the revision to PP 55/2022 seems like a technical clean-up. In reality, it reflects a deeper transformation in how the state wants to treat small businesses, how it defines “micro,” and how it intends to expand the tax base in a more data-driven era. To subscribe please click here
