Indonesia's Women's Minister Urges Review of 11% VAT on Sanitary Pads

A basic necessity at the centre of a tax debate

Indonesia's Minister of Women's Empowerment and Child Protection, Arifah Fauzi, has called for a review of taxation on sanitary pads, joining demands from women's rights advocates, a lawmaker and labour representatives to make menstrual products more affordable. Pads currently carry an effective value added tax (VAT) of 11%, according to the Directorate General of Taxes.

Arifah said sanitary pads are a basic biological necessity connected to health, hygiene and comfort, rather than a luxury. She argued that every woman should have access to safe and suitable menstrual supplies, including during emergencies, and urged support especially for people facing economic hardship.

The tax authority, meanwhile, explained that sanitary pads are classified as taxable goods and currently receive no VAT exemption. Its explanation, issued through its official Instagram account on November 1, 2026, placed the products within Indonesia's existing system for taxing consumption.

The debate brings together two different responsibilities of government: collecting money for public services and keeping unavoidable health expenses affordable. For women with limited incomes, sanitary pads are a recurring purchase that competes with food, transport and other household needs.

Several proposals are now being advanced, including a VAT exemption, a state subsidy and a demand for a 0% tax rate. No approved change or implementation date has been announced in the statements described here.

Arifah's intervention also extends beyond shop prices. Her ministry is pressing organisations distributing disaster aid to include menstrual supplies, recognising that women continue to need them when homes, shops and access to basic services are disrupted.

How a 12% rate produces an 11% charge

The Directorate General of Taxes said sanitary pads sold in Indonesia are taxable goods, known in Indonesian tax terminology as Barang Kena Pajak. Although classified as goods that are not luxuries, they remain subject to VAT because they are outside the categories receiving an exemption.

The calculation involves two figures. The stated VAT rate is 12%, but it is applied to a tax base equal to 11/12 of the selling price. Multiplying those figures produces an effective charge of 11% of the price before VAT.

For example, a hypothetical purchase priced at Rp20,000 before VAT would carry Rp2,200 in tax, bringing the total to Rp22,200. This is an illustration of the calculation, rather than a quoted retail price. It shows how a tax applied to each purchase becomes part of a regular household expense.

The tax authority said the charge operates through the general VAT system governing consumption. Its position focuses on how the goods are classified under current rules. The campaign for change focuses on whether that classification adequately accounts for an essential expense associated with menstruation.

Why advocates want affordability considered

Dahlia Madanih, deputy chair of the National Commission on Violence Against Women, known as Komnas Perempuan, said taxation of menstrual products has yet to adequately account for women's specific reproductive health needs. She called for the policy to be reviewed according to principles of gender fairness.

Dahlia's concern is particularly directed at women with low incomes. A recurring purchase takes a larger share of a small household budget, leaving less room to absorb price increases or meet other essential costs.

Selly Andriany Gantina, a member of the House of Representatives' Commission VIII, also urged the government to consider exempting menstrual products from VAT or covering the tax through state subsidies. She described menstruation as an unavoidable biological process.

"Menstruation is neither a choice nor a lifestyle or a discretionary expense that can be postponed. It is a biological process that women cannot avoid," Selly said.

Selly said tax policy should consider differences in people's needs and economic circumstances. Her argument is that applying the same consumption tax rule across many goods can still place different burdens on the people who need to buy them.

Who bears the recurring cost?

Selly identified women from households with low incomes, informal workers, people with disabilities and schoolgirls as groups whose access to adequate menstrual products needs protection. Her proposal connects tax decisions with the practical question of whether people can obtain essential supplies when they need them.

The Commission VIII lawmaker said the debate should examine the burden carried by consumers, explaining her position in these words:

"The issue is not simply whether the tax specifically targets women. The more fundamental question is who actually bears its burden," she said.

Arifah's appeal similarly centres on access to products that are safe, suitable and affordable. Reducing the cost of a pack of pads addresses one part of that concern, while reaching vulnerable groups also requires attention to how supplies are distributed and where they are available.

Selly acknowledged that tax revenue remains necessary to pay for development and public services. She nevertheless urged the government to assess fiscal policy, meaning decisions about public revenue and spending, against social justice and the needs of vulnerable people.

Period poverty reaches beyond the price of pads

Dahlia described menstrual poverty as limited access to menstrual products, sanitation facilities, clean water and information because of economic or social barriers. The term therefore covers more than an inability to afford a packet of pads.

A person may have a menstrual product but still lack clean water or a suitable place to manage their period. Someone else may have access to a toilet but insufficient money for supplies. Both situations help explain why the policy proposals extend beyond a tax reduction.

Selly called for menstrual product access to be integrated with sanitation, clean water, reproductive health services and menstrual health education. She also urged stronger coordination between Arifah's ministry, the Finance Ministry and other relevant agencies so that women's needs are considered in national policymaking.

Dahlia linked the issue to Indonesia's commitment under the Sustainable Development Goals to end poverty. She also noted that absorbent products can be needed after childbirth, during bleeding and following miscarriage, widening the health circumstances in which people may need such supplies.

Disaster assistance must include menstrual supplies

Arifah said menstrual products should be included in disaster assistance packages, including dignity kits. These are packages of personal hygiene supplies intended to help people meet basic needs and maintain privacy and dignity during emergencies.

The Ministry of Women's Empowerment and Child Protection continues to advocate with aid providers to ensure that women who menstruate are considered when emergency supplies are prepared. Including pads in those packages makes access part of the relief operation itself.

Disaster assistance and tax policy address different moments in the same recurring need. VAT affects purchases through the market, while emergency provision reaches people through aid distribution when ordinary access may be interrupted. Arifah's position brings both into the government's responsibility to support menstrual health.

Labour leaders add a demand for 0% tax

Said Iqbal, president of the Confederation of Indonesian Trade Unions (KSPI) and president of the Labour Party, called for sanitary pads to carry a 0% tax rate in a statement dated November 3, 2026. He described pads as a primary necessity and urged the government to reduce costs for women workers and families with low incomes.

Iqbal placed the demand within a broader package of proposed tax changes for workers. He also sought the removal of tax on Jaminan Hari Tua (JHT), a workers' savings benefit used when employment ends or in old age.

As an alternative if the JHT tax is retained, he proposed increasing the amount that can be withdrawn without tax from Rp50 million to Rp400 million. The proposed threshold is eight times the figure he cited as the current benchmark.

Iqbal also sought an increase in the personal income tax allowance, known as PTKP, to Rp7.5 million per month. He called for taxes on religious holiday allowances, pension benefits and severance payments to be removed, potentially in stages. Those demands concern income and worker benefits, while the sanitary pad proposal concerns tax collected on a purchase.

What a review would need to address

The Directorate General of Taxes said proposals for tax relief require assessment against existing tax rules, their effects on the public and their consequences for government finances. That puts affordability and public revenue within the same policy review.

Selly's proposed exemption or subsidy and Iqbal's demand for a 0% rate offer different routes toward reducing the burden. An exemption removes a product from the relevant VAT charge, while a subsidy uses public support to cover a cost. The precise legal design would determine how either measure works for sellers and buyers.

Malaysia has also entered the Indonesian debate as a nearby comparison, with sanitary pads described as goods outside its tax charge. The practical proposal in Indonesia is to reconsider the treatment of pads within its own tax rules and alongside its health and social support policies.

The dated developments show how the discussion moved from an explanation of existing rules to wider demands for reform:

• November 1, 2026: The Directorate General of Taxes explained that sanitary pads receive no VAT exemption and carry an effective charge of 11%.
• November 3, 2026: Said Iqbal called for a 0% tax rate on pads as part of a broader package of proposed tax relief for workers.

Arifah, Dahlia and Selly have each focused attention on essential needs, affordability and access. Their proposals place responsibility across several agencies: tax decisions involve the Finance Ministry, while health, sanitation, education and disaster assistance require coordination with other public bodies.

Key Points

• Sanitary pads in Indonesia currently carry an effective VAT charge of 11%, calculated using a 12% rate on 11/12 of the selling price.
• Women's Empowerment and Child Protection Minister Arifah Fauzi supports reviewing the tax and including menstrual supplies in disaster aid.
• Komnas Perempuan has called for a review based on reproductive health needs and gender fairness.
• Lawmaker Selly Andriany Gantina proposed a VAT exemption or state subsidies, alongside better water, sanitation and health services.
• KSPI and Labour Party president Said Iqbal demanded a 0% tax rate on pads on November 3, 2026.
• The tax authority says relief proposals require review of legal rules, public benefits and government finances.