inp.polri.go.id - Jakarta. President Prabowo Subianto has decided that the government will continue four economic stimulus packages until 2026, including a 0.5 percent final income tax (PPh) for MSMEs and income tax incentives for workers in certain sectors.
Coordinating Minister for Economic Affairs Airlangga Hartarto stated that based on the results of a limited meeting chaired by President Prabowo Subianto, the government launched eight acceleration programs in 2025, four programs that will continue until 2026, and five programs related to the government's mainstay in absorbing labor.
"The four programs will continue in 2026. The first is related to the final income tax for MSMEs with annual revenues of IDR 4.8 billion. The final tax of half a percent (0.5 percent) will continue until 2029," explained Coordinating Minister Airlangga, Monday (15/9/2025).
He detailed that the government is providing a final income tax incentive of 0.5 percent for individual MSME taxpayers to ease the tax burden and simplify administrative obligations.
The 0.5 percent final income tax incentive has been extended not only until 2026 but also until 2029, providing certainty for MSMEs.
Specifically for 2025, the government has allocated a budget of IDR 2 trillion, with 542,000 registered MSME taxpayers, according to data from the Directorate General of Taxes at the Ministry of Finance.
The second program, which will continue next year, is the extension of Article 21 Income Tax, which this year is extended not only to labor-intensive sectors but also to the tourism, hotel, restaurant, and cafe (horeka) sector.
The government has projected an estimated budget of around IDR 480 billion.
The government is also providing Article 21 Income Tax (PPh) DTP incentives until 2026 for workers in labor-intensive industrial sectors, namely footwear, textiles, apparel, furniture, leather and leather goods with a maximum income of IDR 10 million per month targeting 1.7 million workers.
For the fourth program of the economic package that will be continued next year, namely discounts on Work Accident Insurance (JKK) and Death Insurance (JKM) contributions for non-wage workers.
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