TEMPO.CO, Jakarta - Indonesian Minister of Finance, Purbaya Yudhi Sadewa, has issued a new regulation that changes the procedures for exempting ethanol or ethyl alcohol tax to support energy transition. Previously, PT Pertamina Patra Niaga had requested the simplification of bioethanol tax exemption requirements.
The new policy is outlined in Minister of Finance Regulation Number 34 of 2026, enacted on May 25, 2026. This regulation revises Minister of Finance Regulation Number 82 of 2024 concerning the Procedure for Tax Exemption.
"To support the government's program in the field of national energy resilience and realize the transition and utilization of clean energy through blending taxable goods in the form of ethyl alcohol with oil refinery products," reads a section of the reasoning in Regulation Number 34 cited on Thursday, May 28, 2026.
The new regulation adds one paragraph to the previous Article 8. Through this provision, Purbaya expands the range of industries eligible for tax exemptions.
The blending of oil refinery products with taxable goods in the form of ethyl alcohol is now recognized as a type of manufacturing or processing industry. Therefore, it can meet the administrative requirements for obtaining tax-exempt status. Because it falls under the category of taxable goods, such as alcoholic beverages, ethanol is subject to strict regulations. However, because ethanol is needed as a fuel blend, such as for bioethanol, the government is relaxing its rules specifically for this industry.
Prior to debottlenecking session last February, Purbaya responded to PT Pertamina Patra Niaga's complaint regarding permit constraints. Pertamina proposed a revision to Minister of Finance Regulation Number 82 of 2024 and Regulation of the Director General of Customs and Excise Number PER 13/BC/2024 to simplify the requirements for bioethanol tax exemption.
Vice President of PT Pertamina, Oki Muraza, stated that the requirements for an Industrial Business License (IUI) were the main obstacle to applying for a bioethanol tax exemption. He mentioned that the licensing process, which includes an Environmental Impact Analysis (Amdal), could take up to three years for each location.
Additionally, the government will adopt the new Standard Classification of Indonesian Business Fields (KBLI) number 19206, which covers blending oil refinery products with biofuel (bioethanol) in the processing industry category.
"However, of course, we need several regulatory adjustments or changes from the Minister of Finance Regulation. This will certainly reduce the current single permit system that we are implementing," said Oki as quoted from ANTARA.
Read: Indonesia to Mandate 5% Ethanol-Blended Gasoline From July 2026
Click here to get the latest news updates from Tempo on Google News
Purbaya: Indonesia on Track to Meet Rp3,153.6tn Revenue Goal
23 jam lalu
Minister of Finance Purbaya Yudhi Sadewa is optimistic that the state revenue targeted at Rp 3,153.6 trillion this year will be achieved.
Details of Indonesia's New Rp7.8 Trillion Stimulus Package
1 hari lalu
The Indonesian government is set to launch a Rp7.8 trillion stimulus package in a bid to boost late 2026 economic growth.
Indonesia to Give Tax Incentives for Book Writers
1 hari lalu
This tax relief arrives alongside a package of economic stimuli designed to shore up economic growth in the second quarter of 2026.
Indonesia Scraps OpenAI from Digital VAT Collector List
3 hari lalu
The Directorate General of Taxes revokes OpenAI from digital tax collectors' data in April 2026.
Indonesia Gives Citizens Six Months to Return Assets Held Abroad
16 hari lalu
Finance Minister Purbaya sets a deadline for Indonesian citizens to repatriate their assets and pay taxes.
Purbaya Reaffirms No Asset Hunt for Tax Amnesty Joiners
16 hari lalu
Purbaya said assets previously disclosed by business owners and taxpayers under earlier tax amnesty schemes would not be re-examined.
Jakarta: EVs Remain Tax-Free and Exempt from Odd-Even Rule
22 hari lalu
The Jakarta Provincial Revenue Agency noted that the regional mandate on EVs follows specific provisions established by the central government.
Purbaya Pledges Tax Incentives for Bali IFC Investors
23 hari lalu
Finance Minister Purbaya offers tax exemptions to global investors in the Bali International Financial Center to strengthen foreign reserves.
Celios Sees Major State Revenue Gains from Windfall Tax
26 hari lalu
Celios says imposing a windfall tax on extractive companies could significantly boost Indonesia's revenue by tens of trillions of rupiah annually.
10 Countries with No Income Tax You Can Move to in 2026
26 hari lalu
Looking for a tax-free life? Explore 10 countries with no income tax to move to in 2026, from the UAE to Monaco.
