PMK 71/2026, in force since 2 October, reworks tax objections and sanction reductions — and opens a two-year window to ask DJP to reduce or remove administrative sanctions

Finance Minister Regulation PMK 71/2026, set on 29 September 2026 and in force since its promulgation on 2 October 2026, amends PMK 118/2024 on corrections, objections, and the reduction, removal and cancellation of tax decisions. Three changes matter most to a taxpayer. First, a new Article 27A lets the Director General of Taxes, "in order to boost the national economy", reduce or remove administrative sanctions in assessment letters (SKP) and tax collection letters (STP), and reduce land-and-building-tax (PBB) administrative fines, on applications filed within two years of the regulation taking effect — provided the Article 23 conditions are met, including that the underlying tax has been paid in full. Second, when such an application is assessed, payments on the letter are applied to the unpaid principal tax first and only any excess counts against sanctions. Third, DJP's objection review expressly lists exchanging tax information with partner-country authorities among its steps, and a taxpayer who does not attend the objection hearing has 10 working days from the date the summons notice was sent to submit comments on DJP's review findings. The rule is already in force, so this entry is dated as a late discovery.

Key points

• Status and dates: PMK 71/2026 amends PMK 118/2024 (Tata Cara Pembetulan, Keberatan, Pengurangan, Penghapusan, dan Pembatalan di Bidang Perpajakan). Set (ditetapkan) 29 September 2026 by Finance Minister Suahasil Nazara; promulgated (diundangkan) 2 October 2026 according to the Ministry of Finance's JDIH database; in force on the date of promulgation (Article II(2)).
• Two-year relief window (new Article 27A): "in order to boost the national economy", the Director General of Taxes may reduce or remove administrative sanctions — or reduce PBB administrative fines — in an SKP, SKP-PBB, STP or STP-PBB that meets the Article 23 requirements, for applications filed within two years of the regulation taking effect, that is until about 2 October 2028. The text says "may": relief is at DJP's discretion, not a right.
• Which sanctions can be reduced or removed (new Article 21A): administrative sanctions in an SKP; those in an STP linked to an SKP, except sanctions in STPs issued under Article 25(9), 27(5d) and 27(5f) of the General Provisions and Tax Procedures Law; those in other STPs; and PBB administrative fines in an SKP-PBB or STP-PBB.
• Conditions (Article 23): the tax underlying the sanction must be paid in full; the letter must not still be in a live challenge — for an SKP, for example, no objection was filed, an objection was withdrawn with DJP's approval, or the objection was not considered; the application is written in Indonesian, states the sanction amount by the taxpayer's own calculation with reasons, covers one letter per application, is signed by the taxpayer, representative or attorney, uses the Annex C format, and is filed before any request to auction seized goods. The conditions on a live challenge do not apply to PBB fines where the property was hit by a natural, non-natural or social disaster.
• Payment order (Article 23(6)–(7)): payments on an SKP or STP are applied first to the unpaid principal tax; only the excess is counted against administrative sanctions or PBB fines.
• Objections: Article 14(2)(h) lists, among the steps DJP may take when reviewing an objection, exchanging information for tax purposes with partner-country tax authorities under tax treaties or agreements. Under Article 16(4)–(5), a taxpayer who does not attend the hearing may submit written comments on the review findings within 10 working days of the date the summons notice (Surat Pemberitahuan Untuk Hadir) was sent.
• Transition (Article II(1)): applications to reduce or remove sanctions in STPs issued under Article 25(9), 27(5d) or 27(5f) of the General Provisions and Tax Procedures Law that were received before 2 October and have no decision yet are settled under PMK 118/2024.
• Reading note: some press summaries tie the two-year relief to penalties in the plantation, forestry and mining PBB sectors (PBB-P5L). The text we read — the regulation's own PDF on JDIH Kemenkeu — refers to administrative sanctions in SKP and STP generally and to PBB administrative fines, so check the wording against your own letters. One commentator quoted by Kontan sees uncertainty remaining about how the relief will be applied; we found no DJP implementation guidance yet.

Sources

• JDIH Kemenkeu — PMK 71 Tahun 2026 (primary; ditetapkan 29 September 2026, diundangkan and in force 2 October 2026)
• JDIH Kemenkeu — PMK 71/2026, full text (PDF; Articles 14, 16, 21A, 23, 27A and II)
• DDTCNews — PMK 71/2026 Terbit, Aturan Pembetulan dan Keberatan Pajak Direvisi (secondary)
• IKPI — Suahasil Terbitkan PMK 71/2026, Tata Cara Keberatan Pajak Diubah (secondary)
• Kontan — Sanksi Pajak Bisa Dihapus, PMK 71/2026 Dinilai Sisakan Ketidakpastian (secondary; commentary)