Bandung, 29 November 2025 — The Ministry of Creative Economy/Creative Economy Agency, through the Directorate of Publishing and Photography, held a focused discussion on the reconstruction of income tax (PPh) policies on authors’ royalties. This initiative aims to strengthen the national literary ecosystem by addressing tax policies that have long been a concern for writers and the book industry.
Kementerian Ekonomi Kreatif/Badan Ekonomi Kreatif melalui Direktorat Penerbitan dan Fotografi menyelenggarakan Diskusi Terbatas Rekonstruksi Kebijakan PPh (Pajak Penghasilan) atas Royalti Penulis, Bandung, Sabtu (29/11/2025).
The discussion was held in Bandung, West Java, on Saturday, 29 November 2025. Deputy for Media Creativity at the Ministry of Creative Economy, Agustini Rahayu, stated that revising tax policies for writers is a crucial step in supporting the growth of Indonesia’s literary industry.
“Writers are the foundation of knowledge and culture. Therefore, the policies governing them must ensure fairness and foster growth. Above all, we want to ensure that tax regulations support creativity rather than hinder it, so writers can focus on producing works without being burdened by complex administrative processes,” said Agustini Rahayu in a virtual statement.
The discussion involved various stakeholders in the literary industry, including writers, publishers, communities, and relevant government institutions, providing input to improve the management of PPh on authors’ royalties. Current regulations still present challenges, particularly regarding deduction mechanisms and administrative burdens that writers must bear.
Communications Bureau of the Ministry of Creative Economy/Creative Economy Agency.
Under the existing framework, income tax on royalties and freelance income is calculated using the Norma Penghitungan Penghasilan Neto (NPPN), a method to determine net income for individuals running independent businesses or professions. This mechanism often raises questions among writers due to its complexity, suitability, and impact on productivity.
Professor Dr. Haula Rosdiana, M.Si, a tax policy expert from the University of Indonesia and one of the policy advisors, emphasized the positive social impact of literacy.
“When discussing the literary industry, the principle should be ‘No Tax on Knowledge.’ This sector generates significant positive externalities, and therefore deserves simpler, cheaper, and more efficient taxation that does not overburden writers with administrative duties,” she said in an interview.
Communications Bureau of the Ministry of Creative Economy/Creative Economy Agency.
Writer and national publishing ecosystem representative Asma Nadia expressed appreciation for Ekraf’s consistency in facilitating discussions on reconstructing PPh policies for authors’ royalties. She noted that the issue has been ongoing for years.
“For seven years, this issue has circulated, but this is the first time we feel the discussion has been conducted so seriously and systematically. Today is one of the many opportunities where the Ministry of Creative Economy acts as a bridge to improve tax policies for writers. As a writer, and on behalf of my peers, we deeply appreciate the government’s commitment to pursuing meaningful change,” she said.
Meanwhile, Director of Publishing and Photography Iman Santoso emphasized that the policy drafting process has reached a critical stage. Simplification remains a priority without compromising fairness, ensuring that the resulting policy will not burden but rather empower writers and creative practitioners.
Communications Bureau of the Ministry of Creative Economy/Creative Economy Agency.
“Our target this year is to complete the academic manuscript. Next year, the process will proceed to drafting the Government Regulation (RPP). We understand that this phase is a primary concern for writers, especially regarding potential new complexities in policy implementation. By taking a holistic view of the ecosystem, we hope the finalized policy will provide tangible benefits and enhance the welfare of all stakeholders in this subsector,” he said in closing the discussion forum.
The limited discussion was attended by prominent figures in the literary industry, including Asma Nadia, Dee Lestari, J.S. Khaeren, Sunny Gho from the Indonesian Comic Association, Kelir representing illustrators, Lentera App (digital reading platform), Balai Pustaka (publisher), IKAPI, as well as representatives from the Presidential Special Staff for Creative Economy and the Directorate General of Taxes.
Kiagoos Irvan Faisal
Acting Head of the Bureau for Communication
Ministry of Creative Economy/Creative Economy Agency
