Coordinating Minister Airlangga Urges Entrepreneurs Not To Lay Off

Coordinating Minister for Economic Affairs Airlangga Hartarto. (Photo: Doc. Antara)

Coordinating Minister for Economic Affairs Airlangga Hartarto also appealed to entrepreneurs, especially in the labor-intensive sector, not to terminate employment (PHK).

According to him, this is because the income tax (PPh) of employees with a salary below Rp. 10 million is also borne by the government.

"The government's policy for the labor-intensive sector is also strengthened. Salaries of up to Rp. 10 million are exempt from PPh, so that employers do not reduce their workforce," he said in a joint economic gathering with the President of the Republic of Indonesia, strengthening Indonesia's economic resilience in the midst of a wave of trade tariff wars, Tuesday, April 8.

With taxes subsidized by the government, Airlangga asked entrepreneurs, especially labor-intensive sectors, to survive and find new markets in the midst of uncertain situations.

Airlangga added that the Government has also prepared a budget of IDR 300 trillion for People's Business Credit (KUR) in supporting the labor-intensive sector.

"The government has prepared IDR 300 trillion for sectors such as food and beverages, textiles, skin and furniture, all of which have grown positively above the average economic growth," he said.

Previously, the Ministry of Finance issued Minister of Finance Regulation (PMK) Number 10 of 2025 concerning Income Tax Article 21 on Certain Government-Borrowed Income (DTP) in the Context of Economic Stimulus for Fiscal Year 2025. PMK Number 10 of 2025 is determined and will take effect from February 4, 2025.

The background for the issuance of PMK is an effort to maintain people's purchasing power. In addition, this policy also aims to maintain national economic stability. This rule is a follow-up to the increase in VAT rates by 1 percent to 12 percent on January 1, 2025.

"The issuance of PMK is a form of the Government's commitment to maintain people's purchasing power through the stimulus packages given," said Dwi Astuti, Director of Counseling, Services, and Public Relations.

PMK Number 10 of 2025 stipulates that employees or employees in the footwear industry, textiles and finished clothes, furniture, skin, and leather goods receive PPh 21 DTP incentives starting from the January 2025 tax period or the first month of taxation period working in 2025.

This incentive is given to employees with a gross income of no more than Rp. 10,000,000 per month or Rp. 500,000 per day and employers must have a business field classification code as stated in Attachment A which is an inseparable part of this PMK.