TL;DR
Indonesia's Minister of Finance has issued Minister of Finance Regulation (PMK) No. 18 of 2026 on the Organization and Working Procedures of the Vertical Institutions of the Directorate General of Taxes (DJP). The regulation was enacted on 1 April 2026, revoking PMK 210/PMK.01/2017 as last amended by PMK 184/PMK.01/2020.
Core change: functional positions and implementing officer positions, which previously existed at both Regional Tax Offices (Kanwil DJP) and local Tax Service Offices (KPP), are now consolidated only at Kanwil DJP. KPP structures are streamlined to focus on core service, education, and supervision of taxpayers.
Background
DJP is reshaping its operational architecture alongside the Coretax DJP rollout. The new core tax administration system shifts many document-heavy manual tasks to automated, data-driven workflows. Consequently, DJP's vertical organization needed to be reorganized so that technical functions such as risk analysis, taxpayer extensification, and audit can operate from the regional level rather than purely from the service level.
The regulation was signed by Finance Minister Purbaya Yudhi Sadewa on 17 March 2026 and entered into force on the date of promulgation, 1 April 2026.
What Changes at KPP and KP2KP
Under PMK 184/2020, each KPP carried a group of functional officers attached to its organizational chart. Under PMK 18/2026, that group is removed from the KPP structure. A KPP now consists of a General Affairs and Internal Compliance Subdivision plus the service and supervision sections.
The Tax Service, Education, and Consultation Office (KP2KP) structure also changes. Previously, KP2KP consisted of KP2KP officers and a functional officer group. PMK 18/2026 reorganizes it into functional positions and implementing positions only, without a separate KP2KP officer line.
New Authority for Kanwil DJP
A notable additional change: Kanwil DJP offices other than the Large Taxpayer Office (LTO) and Jakarta Special Regional Office now also have authority over VAT centralization (pemusatan tempat PPN terutang). Multi-location businesses are no longer limited to those two offices for centralization requests.
According to DDTCNews, this broadens taxpayer access to VAT centralization. The geographically closer regional office can process the application, cutting time and compliance cost.
Implications for Taxpayers
For taxpayers, the change does not alter substantive rights and obligations. What shifts is the technical touchpoint. Key things to watch:
- Technical requests previously handled by functional officers at KPP now route through the local Kanwil DJP.
- KPP remains the primary service unit for tax returns, payments, initial consultations, and compliance supervision.
- VAT centralization for multi-branch PKPs can now be processed by a wider set of Kanwil DJP offices outside LTO and Jakarta Special.
The creation of new positions and the appointment of new officials under PMK 18/2026 must be completed no later than one year after promulgation, by 1 April 2027. Services continue as usual during the transition.
Legal Basis
- Minister of Finance Regulation No. 18 of 2026 on the Organization and Working Procedures of the Vertical Institutions of the Directorate General of Taxes, enacted 17 March 2026, promulgated 1 April 2026.
- Revokes: PMK 210/PMK.01/2017 as amended by PMK 184/PMK.01/2020.
Sources: JDIH Ministry of Finance, DJP, DDTCNews.