Dividends from Indonesian companies are taxed very differently depending on who receives them. Pick the recipient to see the rate, the reinvestment exemption and the cash you keep.
| Recipient | Tax | Notes |
|---|---|---|
| Resident individual | 10% final | Withheld by the company; exempt if reinvested in Indonesia |
| Resident individual — reinvested | 0% | Invest in Indonesia within the set period and hold for at least 3 tax years |
| Resident company | 0% | Exempt since the Job Creation Law (no shareholding threshold) |
| Non-resident | 20% PPh 26 | Reduced by tax treaty with a valid DGT form — often 10% or 15% |
Since the Job Creation Law (UU 11/2020, now UU 6/2023) and PMK 18/2021, dividends received by resident individuals are exempt if they are reinvested in Indonesia. Qualifying investments include Indonesian government bonds, listed shares, bank products, property, direct investment in Indonesian companies and certain infrastructure projects. The money must be invested by the end of March of the year after the dividend was received and held for at least three consecutive tax years. You report the investment to DJP by the end of March each year of the holding period.
If you do not reinvest, the dividend is subject to a 10% final tax. You pay it yourself by the 15th of the month after the dividend is received; the paying company does not withhold it from resident individuals. If you planned to reinvest but do not meet the conditions, the 10% becomes payable at that point.
Foreign dividends received by resident individuals are also exempt if reinvested in Indonesia. For listed foreign companies, at least the full dividend must be reinvested; for unlisted ones, at least 30% of the company's after-tax profit. Otherwise they are taxed at normal Pasal 17 rates as part of annual income, with credit for foreign tax paid.
Treaty rates depend on shareholding size and beneficial ownership tests. Check the relevant treaty and your filing obligations with DJP or a tax consultant.