MINISTER OF FINANCE DECREE OF THE REPUBLIC OF INDONESIA NUMBER 40/MK/EF.2/2026 CONCERNING INTEREST RATES AS THE BASIS FOR CALCULATING ADMINISTRATIVE SANCTIONS IN THE FORM OF INTEREST AND PROVISION OF INTEREST COMPENSATION FOR THE PERIOD 1 SEPTEMBER 2026 TO 30 SEPTEMBER 2026.

Background

Based on the FIFTH Dictum of Minister of Finance Decree Number 488/KMK.010/2021 as amended by KMK Number 169 of 2025, the authority to determine monthly interest rates as the basis for calculating administrative sanctions in the form of interest and providing interest compensation has been delegated as a mandate to the Director General of Economic and Fiscal Strategy for and on behalf of the Minister of Finance. This determination also implements the provisions of Article 8 paragraphs (2), (2a), (5), Article 9 paragraphs (2a), (2b), Article 11 paragraph (3), Article 13 paragraphs (2), (2a), (3b), Article 14 paragraph (3), Article 17B paragraphs (3), (4), Article 19 paragraphs (1), (2), (3), and Article 27B paragraph (4) of Law Number 6 of 1983 concerning General Provisions and Tax Procedures as amended by Law Number 7 of 2021 concerning Harmonization of Tax Regulations.

Legal Basis

  1. Law Number 6 of 1983 concerning General Provisions and Tax Procedures as amended several times, most recently by Law Number 7 of 2021 concerning Harmonization of Tax Regulations.
  2. Minister of Finance Decree Number 488/KMK.010/2021 as amended by KMK Number 51 of 2026 concerning the Second Amendment to KMK Number 488/KMK.010/2021.

Provisions

FIRST: Establishing monthly interest rates as the basis for calculating administrative sanctions in the form of interest and providing interest compensation applicable from 1 September 2026 to 30 September 2026, as follows:

A. Administrative Sanctions

  1. Article 19 paragraphs (1), (2), and (3): interest rate of 0.60% per month.
  2. Article 8 paragraphs (2), (2a), Article 9 paragraphs (2a), (2b), and Article 14 paragraph (3): interest rate of 1.02% per month.
  3. Article 8 paragraph (5): interest rate of 1.43% per month.
  4. Article 13 paragraphs (2) and (2a): interest rate of 1.85% per month.
  5. Article 13 paragraph (3b): interest rate of 2.27% per month.

B. Interest Compensation

Article 11 paragraph (3), Article 17B paragraphs (3), (4), and Article 27B paragraph (4): interest rate of 0.60% per month.

SECOND: This Minister's Decree comes into effect on 1 September 2026.

This decree was established in Jakarta on 31 August 2026, signed on behalf of the Minister of Finance of the Republic of Indonesia by the Director of Economic Stabilization Strategy, Noor Faisal Achmad. Copies of the decree were distributed to the Deputy Minister of Finance, Secretary General, Directors General, Inspector General, Heads of Agencies within the Ministry of Finance, Head of the Bureau of Organization and Administration, Head of the Legal Bureau of the Secretariat General, and Senior Officials within the Directorate General of Economic and Fiscal Strategy.