## Administrative Penalties and Compensation Interest Rates for the January 2021 Period

The Minister of Finance stipulates the interest rates as the basis for calculating administrative penalties in the form of interest and the granting of interest compensation for the January 2021 period. This policy is regulated under the Minister of Finance of the Republic of Indonesia Decree Number 57/KMK.10/2020 concerning Interest Rates as the Basis for Calculating Administrative Penalties in the Form of Interest and Interest Compensation for the period between 1 January 2021 to 31 January 2021 (KMK 57/2020).

The administrative penalties in the form of interest and interest compensation shall be effective from 1 January 2021 to 31 January 2021. There are 4 interest rates apply for administrative penalties, ranging from 0.51% to 1.76%. The four monthly interest rates are lower than the monthly interest rates for the December 2020 period. Details of monthly interest rates for tax interest penalties for the period between 1 January 2021 to 31 January 2021 can be seen in Table 4.

**Table 4 Administrative Penalties in the Form of Interest the January 2021 Period**

Source: Job Creation Law and KMK 57/2020 (processed)

The amount of monthly interest rates in the MoF Decree varies as it is the result of the calculation of the monthly interest rate with 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 0.51%. The monthly interest rates are lower than the previous period. Details of the monthly rates for tax interest compensation for the period between 1 January 2021 and 31 January 2021 can be seen in Table 5.

**Table 5 Interest Compensation for the January 2021 Period**

Source: Job Creation Law and KMK 57/2020 (processed)