The government has announced fiscal incentives in the financial sector in the form of government-subsidized income tax (PPh DTP) on interest or returns from Government Securities (SBN) denominated in foreign currency. This tax incentive is available for the period from June through December 2026.
The government officially announced tax incentives for the financial sector through Minister of Finance Regulation (PMK) No. 59 of 2026, signed by Minister of Finance Purbaya Yudhi Sadewa on July 30, 2026, and effective as of August 24, 2026. This regulation stipulates that income tax on interest or returns from Government Securities (SBN) denominated in foreign currency (forex) issued in the domestic primary market will be borne by the government (DTP).
This DTP income tax facility applies to two types of financial instruments, namely: Government Bonds (SUN) denominated in foreign currency and Sharia Government Securities (SBSN) denominated in foreign currency. The scope of income covered by the government includes interest or returns on foreign-currency SBNs, including discounts, arising from issuance in the domestic primary market. The regulation clarifies that “issuance in the domestic primary market” refers to the initial offering and sale of foreign-currency SBNs within the territory of Indonesia.
This DTP income tax facility is provided for the tax periods from June 2026 through December 2026. During this period, interest income or returns on foreign currency SBNs arising from issuances in the domestic primary market will be fully covered by the government, so investors will not be required to pay income tax on such income.
Background: Deepening Financial Markets and Adjustments to DHE Policy
The preamble to PMK 59/2026 states that this policy is designed to provide fiscal incentives that attract the interest of the public and business entities—including exporters who are required to invest their foreign exchange earnings—to allocate their funds to foreign-currency SBNs issued by the government domestically, while also supporting efforts to deepen the domestic financial market.
What Does This Mean for Investors and Business Owners?
For domestic investors and businesses—including exporters of natural resources subject to foreign exchange placement obligations—the availability of this DTP income tax facility essentially enhances the appeal of government-issued foreign currency SBNs in the domestic market, as the returns received are maximized without income tax deductions during the period from June–December 2026. This instrument can serve as a relevant alternative for investing funds, particularly for those who have been considering placing their foreign exchange holdings abroad.
However, taxpayers planning to take advantage of this benefit are advised to carefully ensure compliance with all criteria specified in PMK 59/2026, including ensuring that the purchase of foreign currency-denominated SBNs is made at the time of initial issuance (primary market) within the territory of Indonesia, in order to be eligible for the PPh DTP incentive.
This news article is based on PMK No. 59 of 2026. For a specific analysis of the impact on your investment portfolio or tax obligations, please consult with our team of tax consultants.
