The government, through the Coordinating Ministry for Economic Affairs of the Republic of Indonesia, has officially released press release HM.02.04/311/SET.M.EKON.3/09/2025 regarding the 2025 Economic Pact: Government Strategy to Drive Growth, Increase Investment, and Create Jobs. The 2025 economic package is a strategic step to address global challenges and promote quality economic growth, consisting of 8 acceleration programs in 2025, where four programs will continue in 2026.
One of the programs to be continued in 2026 is that the government will extend the 0.5% final income tax incentive for MSMEs with a turnover of up to IDR 4.8 billion per year, which is confirmed to be valid until 2029 so that it does not need to be extended every year. This incentive will certainly require a budget. The government has allocated a budget of IDR 2 trillion for 542,000 registered taxpayers, which will be regulated through a revised Government Regulation.
In addition, income tax under article 21 will be covered by the government for workers in the tourism sector, with a budget of Rp480 billion allocated for workers earning less than Rp10 million per month. Furthermore, income tax incentives under article 21 will also be provided for workers in labor-intensive industries, namely footwear, textiles, apparel, furniture, leather goods, and leather products, with a total budget of IDR 800 billion in 2025.
In addition, the government will also provide a discount program for work accident insurance and death insurance for non-salaried workers, not only for online transportation and motorcycle taxi drivers, but also for farmers, traders, fishermen, construction workers, and domestic workers, with a budget of Rp753 billion. This program is expected to boost Indonesia’s economic growth even further.
By Olina Rizki Arizal – Partner
TBrights is a tax consultant in Indonesia that currently serves as an Integrated Business Service in Indonesia, providing comprehensive taxation and business services.
Reference:
- Press release HM.02.04/311/SET.M.EKON.3/09/2025 on the 2025 Economic Pact: Government Strategy to Drive Growth, Increase Investment, and Create Jobs.
