What NPWP is
NPWP (Nomor Pokok Wajib Pajak) is the taxpayer identification number. You need it — or now your NIK — to file returns, open some bank and investment accounts, get credit, and avoid higher withholding rates.
NIK as NPWP
Under PMK 112/2022, Indonesian citizens' NIK — the 16-digit number on the e-KTP — doubles as their NPWP. The change took full effect in mid-2024 after the old 15-digit NPWP format was retired. To use your NIK for tax you must validate it in the tax system, which most people did by logging into DJP Online or now Coretax. If you already had an NPWP, it was linked to your NIK automatically.
| Taxpayer | Tax ID |
|---|---|
| Indonesian citizen (resident) | NIK (16 digits) |
| Foreigner, company, government body | 16-digit NPWP (old 15-digit numbers padded with a leading 0) |
| Branch or business location | NITKU — 22 digits (NPWP/NIK + 6-digit location code) |
How to register
- Citizens — if you have an NIK, you only need to activate a Coretax account and validate your data. No separate application.
- Foreign residents — register in Coretax with your passport and KITAS/KITAP. Your employer often handles this when you start work.
- Companies — a PT receives an NPWP through the OSS business licensing system when it is set up. Other entities register in Coretax with their deed of establishment and the identity of the person in charge.
Married couples
A family is one tax unit by default. A wife without separate tax status uses her husband's tax ID for family reporting, while her employer withholds on her salary using her own NIK. A wife who chooses to manage her tax separately (status PH) or is legally separated (HB) registers on her own.
What happens without one
- PPh 21 withholding is 20% higher.
- PPh 23 withholding is 100% higher (4% instead of 2% on services).
- PPh 22 on imports and certain purchases is 100% higher.
- You cannot register as a PKP for PPN or use the UMKM 0.5% certificate.
Inactive and deregistered status
If you no longer have income above PTKP or have left Indonesia permanently, you can apply to become a non-effective taxpayer (NE), which stops the filing obligation, or deregister entirely. Foreigners leaving Indonesia should deregister and settle their final tax position before departure.
Registration steps in Coretax change as the system is updated. Check the current process at DJP.