Indonesia to Cut Royalty Income Tax for Writers to 1.5%
Jakarta. Indonesia will cut the royalty income tax for book writers from 15% to a final rate of 1.5%, starting in the second half of 2026.
The government is currently drafting the regulation, according to Creative Economy Minister Teuku Riefky Harsya.
“We should be able to implement [this income tax cut] within two months. We will, of course, push for a faster implementation,” Riefky said in Jakarta on Tuesday.
The tax cuts will be available for authors who publish work with a clear International Standard Book Number (ISBN). This is a series of unique numbers meant to identify books.
The move is expected to give a stimulus for the publishing industry, while encouraging authors’ productivity amid the rise of artificial intelligence (AI). Riefky said that the government had also discussed this plan with the industry, scholars, and other stakeholders.
Finance Minister Purbaya Yudhi Sadewa had previously told reporters that the impact of this policy would not be immediate. However, it is expected to boost the number of quality book publications, including scientific and economic books.
"The main point is to encourage Indonesian writers to write more actively as they will only have to pay lower taxes," Purbaya said.
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