The Ministry of Finance 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 October 2021 to 31 October 2021.
Details of the interest rates are stipulated under the Minister of Finance of the Republic of Indonesia Decree No. 54/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 October 2021 to 31 October 2021 (MoF Decree 54/2021). This regulation has been effective as of 1 October 2021. Four monthly 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 September 2021 period
Details of monthly interest rates for tax interest penalties for the period between 1 October 2021 to 31 October 2021 are indicated in Table 5.
Table 5 Details of Monthly Interest Rates of Interest Penalties
Source: Job Creation Law and MoF Decree No. 54/KM.10/2021
The monthly interest rates in the MoF Decree vary as they are 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 0.51%. The monthly interest rate is lower than the previous period. Details of the monthly rates on tax interest compensation are indicated in Table 6.
Table 6 Details of Monthly Interest Rates of Interest Compensation
Source: Job Creation Law and MoF Decree No. No. 54/KM.10/2021