JHT Tax Row: Said Iqbal to Write Purbaya on Cuts

JAKARTA — JHT tax has come under fresh criticism after Said Iqbal said he will send a letter to Finance Minister Purbaya Yudhi Sadewa asking that taxes on Jaminan Hari Tua withdrawals be removed. Labor unions are also pushing for holiday allowance, or THR, not to be taxed.

Iqbal made the remarks in an online press conference on Sunday, June 28, 2026. He said the deduction on JHT feels odd because the money comes from workers’ wages, which have already been subject to income tax during their working years.

JHT tax questioned as a double hit

Iqbal argued that workers already bear a tax burden when they receive their monthly pay. After that, they still have to set aside part of their income for JHT. When the balance is withdrawn, he said, the state taxes money that laborers believe has already been taxed from the start.

“I will send a letter to Finance Minister Mr. Purbaya to ask for a review, and ideally the Jaminan Hari Tua or JHT tax should be removed,” Iqbal said during the online press conference on Sunday (6/28/2026).

He gave an example: if a worker earns Rp 5 million, that income is already taxed. From the remaining net pay, the worker still contributes to JHT. In his view, taxing the withdrawal makes the burden feel layered.

“Why tax it again? It has already been deducted,” he said. Iqbal also pointed to deductions that, in his view, can reach 15 percent.

Iqbal said the policy is inconsistent with how large businesses are treated under some fiscal measures, such as tax amnesty and tax holiday. He said workers also deserve lighter treatment, especially because JHT is often used when employees are laid off or reach the end of their working life.

“Big corporations get tax amnesty, get tax holiday. We accept that in the current situation, but workers also need to be considered,” he said.

Purbaya asked to check JHT tax rules with the tax office

The issue of JHT tax had already entered public discussion through Finance Minister Purbaya Yudhi Sadewa’s response. When met at his office in Jakarta on Friday, June 26, 2026, Purbaya said he would recheck the rule with the Director General of Taxes before giving a fuller explanation.

“I’ll check again with the Tax Director General. I’ll see again how it works,” Purbaya said, according to his remarks at the Finance Ministry office.

That response matters because it shows the government has not fully closed the door on revisiting the current rule. But Purbaya has not yet stated a final position on whether the JHT tax will be changed or left in place. For now, the matter remains in the ministry’s hands.

For workers, the outcome could affect how much money they actually receive when they cash out JHT. If the policy stays, the tax deduction will still appear at withdrawal. If the rule changes, the payout would arrive more intact.

Labor unions reject taxes on BPJS Ketenagakerjaan JHT

Opposition to the levy has also come from labor groups. Mirah Sumirat, president of the All-Indonesia Workers Union Association, or ASPIRASI, had earlier voiced strong rejection of taxes on BPJS Ketenagakerjaan JHT withdrawals.

In a June 25, 2026 press release, Mirah explained that the government applies a final 5 percent tax on JHT balances above Rp 50 million, as well as certain progressive rates for further withdrawals under existing tax rules. For unions, that means workers lose part of their entitlement right when they need it most.

“JHT is a worker’s right. It is money earned through labor and collected during working years as support for life after employment ends. It is very unfair when workers are in financial trouble, laid off, or want to use JHT as business capital, and the money is still taxed,” Mirah said.

Her statement shows that the debate is not just about tax mechanics. For workers, JHT often serves as a financial cushion when income stops. After layoffs, the money can help them survive, pay instalments, or start a small business.

That is why labor unions support the demand to remove the JHT tax. They argue that money drawn from workers’ own contributions should not be treated like fresh income subject to a new levy when it is withdrawn.

THR also under pressure from workers’ demands

Iqbal also wants THR to stay tax-free. He said the deduction adds pressure for workers who usually rely on the holiday allowance for family needs ahead of religious holidays. He said he would ask the president to stop the deduction, starting with 0 percent tax on JHT and then expanding the demand to THR.

“I will ask the president that there should be no deduction, starting from JHT at 0 percent. THR should follow too. I will send an official letter as the president’s adviser to Mr. Purbaya,” Iqbal said.

In practice, THR is often used for basic needs: kitchen spending, travel home for the holidays, school fees for children, and overdue bills. That makes any tax on THR a sensitive issue for labor unions.

On the ground, the issue could become part of bargaining between the government, workers, and employers. If the rule does not change, unions are expected to keep pressing through official letters, public statements, and lobbying at relevant ministries. If the government opens the door to a revision, the impact would show up in JHT withdrawals and holiday pay slips for workers who have long faced deductions.

One figure remains at the center of the dispute. Mirah Sumirat said the final 5 percent deduction applies to JHT balances above Rp 50 million. On paper, the amount looks small, but for many workers who have just lost their jobs, even a small cut still feels heavy.