Jakarta, Thursday 5 November 2026 – The Minister of Micro, Small, and Medium Enterprises (UMKM) Maman Abdurrahman gave clarification after reports emerged of tax officers visiting warung tegal (warteg). He emphasized that business operators with a maximum turnover of Rp500 million per year are not subject to income tax (PPh).
Maman explained that the tax rate for businesses with turnover up to Rp500 million is 0 %, adding, "That means it applies everywhere, from Sabang to Merauke, where the annual revenue is Rp500 million, no tax is levied. 0%." Small enterprises such as masseurs, hairdressers, and warteg generally fall into this category.
For business operators with turnover up to Rp4.8 billion per year, the government provides a final income tax (PPh) rate facility of 0.5 %.
Maman also highlighted the abuse of this facility by large entrepreneurs who split their companies so that each entity’s turnover stays below the Rp4.8 billion threshold. He gave an example, "So they split PT. Oh, even though in one year it already reached Rp10 billion, but by splitting it remains under Rp4.8 billion, so they can enjoy the incentive facility that is actually not their right."
The minister stressed that the reports of warteg being visited by tax officers do not reflect the general policy. "Are millions of those stalls being visited by tax officers? No. Maybe one or two, not more, not less, perhaps more of a miss or administrative error," he said.
He asked the public not to worry that the government will chase small business operators, including warteg owners, to collect taxes, and emphasized that tax facilities should be granted to businesses that truly meet the turnover criteria.
Source: cnbcindonesia.com
