Employers can reimburse employees for using personal vehicles for business travel, commuting, or company-owned cars.

While Indonesia does not have a statutory mileage rate, companies should ensure that reimbursement policies are fair, consistent, and well-documented.

Reimbursement options include:

  • A fixed rate per kilometre
  • Actual fuel and maintenance cost reimbursements

For tax-related considerations, refer to the Directorate General of Taxes (DJP).

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