Many owners of micro, small, and medium enterprises (MSMEs) in Indonesia have not created business identification numbers out of fear of paying taxes and the government seeks to address this issue. The Investment Ministry/Investment Coordinating Board is now urging these MSMEs to not be afraid of signing up to pay the business tax, which is not a large amount. The Ministry clarified that the tax will only be imposed when an MSME’s income exceeds IDR500m (USD32,500). Furthermore, the business tax for MSMEs is only 0.5% of their total excess income. MSMEs have been urged to register their businesses without delay.
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