PP 18 2026

Indonesia has issued a new framework governing the fees its defense establishment may charge for the services it provides to the public and to other state bodies. Government Regulation No. 18 of 2026 (Peraturan Pemerintah Nomor 18 Tahun 2026 tentang Jenis dan Tarif atas Jenis Penerimaan Negara Bukan Pajak yang Berlaku di Lingkungan Kementerian Pertahanan) sets out the categories of Non-Tax State Revenue (Penerimaan Negara Bukan Pajak, or PNBP) collected within the Ministry of Defense and fixes the tariffs attached to each. It replaces the implementing arrangements that had operated under two earlier regulations dating to 2013 and 2014.

Issue. The Ministry of Defense runs a range of activities that generate income outside ordinary tax channels — military hospitals treating patients, hydrographic charts sold to shipping operators, vaccines and medicines produced by its pharmaceutical units, and training delivered to outside parties. Previously these revenue streams were governed by separate instruments: PP 57/2013 on defense-sector PNBP generally and PP 17/2014 on health-service revenue specifically. Consolidating both into a single regulation lets the government refresh the tariff schedule and apply one coherent set of collection rules across the ministry, rather than leaving service units to reconcile overlapping older texts.

Key provisions. Pasal 1 lists six sources of PNBP within the ministry: health services; hydro-oceanographic services; production and services of pharmaceutical institutions; psychology services; training services; and the use of facilities and infrastructure tied to the ministry's tasks and functions. The specific types and the rate for each are set out in an Appendix that the regulation treats as an inseparable part of the text. A further provision clarifies the scope of training-service fees: the tariff for training under Pasal 1 paragraph (1) letter (e) does not cover the cost of meals, transport, and accommodation, which the paying party must bear directly in line with prevailing rules.

Pasal 10 introduces flexibility on price. On certain considerations, a tariff may be set as low as Rp0 or zero percent — a mechanism allowing the ministry to waive charges where policy warrants. The amount, conditions, and procedures for applying such tariffs are to be governed by a Minister of Defense regulation, but only after the Minister of Finance has given approval. Pasal 11 states the basic fiscal discipline expected of any PNBP: all revenue collected within the ministry must be deposited into the state treasury, leaving no room for off-budget retention.

Two transitional clauses manage the shift from the old regime. Pasal 12 preserves existing contracts: cooperation agreements for the sale of hydro-oceanographic publications already concluded with paying parties before this regulation took effect stay valid until those contracts expire. Pasal 13 addresses the implementing rules of the superseded regulations — the technical instruments built under PP 57/2013 and PP 17/2014 remain in force so far as they do not conflict with the new regulation, which avoids a regulatory gap while fresh implementing measures are drafted.

Implications. For the operators and citizens who pay these fees — patients at defense hospitals, shipping firms buying charts, organizations sending staff for training — the practical effect depends on the figures in the Appendix, which restate the price of each service. The carve-out on training costs in particular signals that headline training tariffs are for instruction only, and that participants should budget separately for logistics. The zero-tariff option in Pasal 10 gives the ministry a documented route to provide certain services without charge, subject to Finance Ministry sign-off, which keeps fiscal control centralized rather than devolved to individual units. Because Pasal 13 keeps older implementing rules alive on a conditional basis, service units will need to read those rules against the new regulation to identify any clauses that no longer apply, and the deposit duty in Pasal 11 reaffirms that none of this revenue may be held back at unit level.

The regulation's design places its operative detail in two layers. The articles establish the categories of revenue, the deposit duty, the zero-tariff option, and the transitional treatment of prior contracts and implementing rules, while the Appendix carries the rate figures for each listed service. Implementing measures issued by the Minister of Defense, with prior Finance Ministry approval under Pasal 10, will supply the conditions and procedures for any reduced or waived tariffs. Until those measures appear, the surviving rules from PP 57/2013 and PP 17/2014 continue to apply where they do not conflict with the new text, so the day-to-day collection of defense-sector PNBP proceeds without interruption.

Methodology: This memo summarises the official regulation text and is not legal advice; report corrections to contact@crpg.info.

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