Inp.polri.go.id - Jakarta. The Indonesian government will fully cover Article 21 income tax for workers in five labor-intensive sectors throughout 2026, aiming to protect purchasing power and economic stability. 

The policy applies nationwide and targets employees earning below Rp 10 million per month.

The measure is stipulated in Minister of Finance Regulation (PMK) No. 105/2025, issued on December 29, 2025, as part of the 2026 economic stimulus package. The eligible sectors are footwear, textiles and apparel, furniture, leather and leather goods, and tourism.

“This incentive is designed to maintain people’s purchasing power while supporting economic and social stability in 2026,” the regulation states, as quoted by antaranews.com on Sunday (4/1/2026).

The incentive covers regular and fixed income, including salaries and fixed allowances. Eligible workers must have a registered Tax Identification Number or integrated National ID. Employers are required to issue tax slips and report the facility in monthly tax returns.

(mg/inp/pr/rs)