Jakarta. Finance Minister Purbaya Yudhi Sadewa signaled potential tax incentives for Indonesia’s capital markets, including the mutual fund industry, as the government seeks to deepen domestic investor participation and strengthen financial resilience.

The proposed incentives could range from gradual reductions in income tax to possible exemptions on capital gains, Purbaya said after attending the launch of the Planned and Regular Investment Program (PINTAR) for mutual funds and the opening of Mutual Fund Week 2026 at the Indonesia Stock Exchange on Monday.

“As long as the program runs well, we can gradually reduce income tax. It is even possible that the income could be tax-exempt,” he said, adding that any fiscal incentives would depend on the effectiveness of investment literacy and education programs.

He described the PINTAR initiative as a positive step to mobilize public funds into structured and professionally managed investments, helping channel savings into the capital market more safely.

The program is also seen as a key effort to deepen Indonesia’s capital markets by expanding the base of domestic investors, reducing vulnerability to foreign capital flows.

“With stronger domestic participation, our market will not be easily shaken by external players as long as our economic fundamentals remain solid,” Purbaya said.

However, he stopped short of setting specific targets for incentives, such as a minimum number of investors, adding that the government would first evaluate the program’s progress over the next six months.

“If the program performs well, say in six months, you can come to me and request incentives. I will consider it,” he added.

Meanwhile, Friderica Widyasari Dewi, chairman of the Financial Services Authority (OJK), backed calls for tax incentives to support the mutual fund industry, citing past policies that had accelerated its growth.

“Tax incentives for mutual funds in the past proved effective in driving rapid industry expansion. We hope similar measures can be implemented again,” she said.

Friderica noted that the PINTAR program aligns with broader efforts to boost retail investor participation, particularly among younger Indonesians, by encouraging disciplined and regular investment habits.

The initiative has drawn commitments from 30 investment managers and 26 mutual fund distribution agents (APERD). Indonesia’s capital market investor base has now reached nearly 25 million, with around 24.7 million dominated by younger investors.