The government has released monthly interest rates as the basis for calculating administrative penalties in the form of interest and the granting of interest compensation for the period between 1 March 2021 to 31 March 2021.

Details of the interest rates are stipulated under the Minister of Finance of the Republic of Indonesia Decree No. 13/KM.10/2021 concerning Interest Rates as the Basis for Calculating Administrative Penalties in the Form of Interest and Interest Compensation for the Period between 1 March 2021 to 31 March 2021 (MoF Decree 13/2021). This regulation was signed on 23 February 2021.

Four monthly interest rates apply for administrative penalties, ranging from 0.52% to 1.77%. The four monthly interest rates are higher than the monthly interest rates for the February 2021 period. . Details of monthly interest rates for tax interest penalties for the period between 1 March 2021 to 31 March 2021 can be seen in Table 1.

Table 1 Details of Monthly Interest Rates of Interest Penalties

Source: Job Creation Law and MoF Decree 13/2021.

The amount of monthly interest rates in the MoF Decree varies as it is the result of the calculation of the monthly interest rate. The calculation is based on the reference interest rate formula set by the minister of finance plus the uplift factor of each article and divided by 12.

On the other hand, the interest rate as the basis for the granting of interest compensation is set at 0.52%. The monthly interest rate is higher than the previous period of 0.51%. Details of the monthly rates on tax interest compensation for the period between 1 March 2021 and 31 March 2021 can be seen in Table 2.

Table 2 Details of Monthly Interest Rates of Interest Compensation

Source: Job Creation Law and MoF Decree 13/2021.

March 2021 Interest Penalties and Compensation Interest Rates