Light Tax Burden & Social Protection: Focus on Four Economic Programs for 2026

Adyasta’s Efforts to Attend a Hearing at the Tax Office

September 10, 2025

The Inheritance Tax Controversy: Between BPHTB, SKB, and Final Income Tax

September 19, 2025

Published by IT Adyasta at September 19, 2025

Tags

Light Tax Burden & Social Protection

The Indonesian government has announced that there are four economic packages that will be continued until 2026 as part of the economic acceleration package. This decision came from a limited meeting led by President Prabowo Subianto, with the aim of providing policy certainty for MSMEs, workers in the tourism and labor-intensive industries, and informal workers. However, some details of this package are still in the planning stage and not all of them have complete implementing regulations.

The extension of the 0.5% final income tax for individual MSMEs is intended to ensure that this very low final tax rate remains in effect until 2029, rather than being extended on a year-to-year basis. This program aims to ease the tax burden and simplify administration for MSMEs with an income of up to around IDR 4.8 billion per year. For 2025, the budget allocation for this package is ± IDR 2 trillion with around 542 thousand registered MSMEs. To make this extension legally binding, the government said that a revision of the Government Regulation (PP) is being prepared.

Income Tax Article 21 Borne by the Government (DTP) for the tourism sector (horeka) applies to workers in hotels, restaurants, and cafes with incomes of up to approximately IDR 10 million per month. This incentive will be extended to 2026, with an estimated budget of around IDR 480 billion. However, even though the announcement is official and there is a budget commitment, the detailed implementing regulations (e.g., administrative requirements, implementation in the field) have not yet been fully finalized.

The Income Tax Article 21 DTP incentive for workers in labor-intensive industries will also be extended. This covers industries such as footwear, textiles, apparel, furniture, leather and leather goods, with workers earning a maximum salary of around IDR 10 million per month. The target recipients of this program are approximately 1.7 million workers. The estimated budget for 2025 has been mentioned, but the binding regulations for 2026 are still being prepared. (DDTCNews)

The discount on JKK & JKM contributions for non-salaried workers (BPU) has been expanded (not only for online motorcycle taxi drivers/ojol/similar sectors, but also for informal workers such as farmers, fishermen, construction workers, domestic workers, traders, etc.). The target is to reach around 9.9 million people, with an estimated budget of around IDR 753 billion. Although public communications have stated that this discount will be “expanded and continued,” details of the regulation, such as the exact discount percentage, registration mechanism, and implementation in the field, are not yet fully available.

References :