Government Continues 4 Strategic Economic Programs Until 2026, Focuses On MSMEs, Tourism, And Workers

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

Coordinating Minister for Economic Affairs Airlangga Hartarto said the government would continue four programs in economic policy packages by 2026.

Airlangga explained that the first program was the extension of the final income tax (PPh) for Micro, Small and Medium Enterprises (MSMEs).

He explained that the government will continue the final PPh policy of 0.5 percent for MSME players with a maximum income of IDR 4.8 billion per year until 2029.

This policy is no longer extended on an annual basis, but is given certainty for the next four years.

"So we don't extend it one year or one year, but we will be given certainty until 2029. Then in 2025 the allocation will be Rp. 2 trillion, then the registered taxpayers are 542 thousand, this is from the Ministry of Finance. Then we need a revision of the PP," he explained at the Press Conference, Monday, September 15.

Furthermore, Airlangga said the Government would continue the income tax (PPh) policy Article 21 Borne by the Government (DTP) for workers in the tourism sector, especially the sub-sector of hotels, restaurants, and cafes (Horeka).

He added that this incentive applies to workers with a salary of under Rp. 10 million, with an estimated budget of Rp. 480 billion in 2026.

Airlangga said the Government would also continue incentives for workers in labor-intensive industries, such as footwear industries, textiles, finished clothing, furniture, leather, and leather goods.

Meanwhile, the Government bears PPh 21 for workers with a salary below Rp. 10 million will be borne by the government with a target recipient of 1.7 million workers and this year's budget allocation of Rp. 800 billion.

Berikutnya, Pemerintah juga akan memperluas Diskon iuran untuk program Jaminan Kecelakaan Kerja (JKK) dan Jaminan Kematian (JKM) bagi pekerja bukan penerima upah, sehingga tidak hanya berlaku bagi pengemudi ojek online (ojol) dan pekerja informal lainnya, tetapi juga mencakup petani, pedagang, nelayan, buruh bangunan, dan pekerja rumah tangga.

Airlangga menyampaikan target penerima manfaat mencapai 9,9 juta orang dengan estimasi anggaran sebesar Rp753 miliar.

Next, the Government will also expand the contribution discount for the Work Accident Insurance (JKK) and Death Security (JKM) programs for non-wage workers, so that it does not only apply to online motorcycle taxi drivers (ojol) and other informal workers, but also includes farmers, traders, fishermen, construction workers, and household workers.

Airlangga said the target of beneficiaries reached 9.9 million people with an estimated budget of Rp753 billion.