Evaluation of the Feasibility of Non-Taxable Income (PTKP) In Indonesia Based on Inflation, Purchasing Power, and Economic Ability: A Systematic Literature Review

Non-Taxable Income (Penghasilan Tidak Kena Pajak, PTKP) is a key component of Indonesia's individual income tax system, as it establishes the amount of income exempt from taxation and reflects considerations of taxpayers' economic capacity, purchasing power, and tax equity. This study evaluated the adequacy of Indonesia's PTKP threshold by examining inflation, purchasing power, living costs, and the ability-to-pay principle through a systematic literature review supplemented by a descriptive analysis of economic indicators. The review examined relevant academic publications and institutional reports, primarily covering the 2016–2025 period. Data were analyzed through thematic synthesis of previous research and simulations of PTKP's inflation-adjusted value. The findings indicated that the annual PTKP threshold for unmarried individuals without dependents (TK/0) had remained unchanged at IDR 54 million since 2016. Based on cumulative inflation from 2016 to 2025, approximately IDR 71.58 million would have been required in 2025 to maintain the purchasing power equivalent of IDR 54 million in 2016. Conversely, the existing IDR 54 million threshold in 2025 represented approximately IDR 40.74 million in 2016 purchasing power. The reviewed literature further suggested that increasing the PTKP threshold could enhance taxpayers' disposable income and support household purchasing power while potentially reducing the individual income tax base. The study concluded that PTKP adequacy should be assessed through a transparent, periodic evaluation mechanism incorporating relevant economic indicators and taxpayers' ability to pay. The estimated IDR 71.58 million represented an inflation-adjusted reference value rather than a definitive recommendation for a revised PTKP threshold.