JAKARTA - The government officially covers the Income Tax (PPh) Article 21 period 2026 for workers in five specific labor-intensive sectors.
The policy is contained in the Minister of Finance Regulation (PMK) Number 105 of 2025 as part of the economic stimulus package for the 2026 fiscal year.
"That in order to maintain the sustainability of people's purchasing power and carry out the function of economic and social stabilization in 2026, an economic stimulus package has been set as an effort by the government to maintain the level of people's welfare, including by providing fiscal facilities," reads the consideration of PMK 105/2025, quoted by ANTARA, Sunday, January 5.
The five business sectors that are included in the recipients of the PPh Pasal 21 facility are borne by the government (DTP), including the footwear, textile and garment industries, furniture, leather and leather goods, and tourism.
The incentive is given for PPh 21 on all fixed and regular gross income throughout 2026.
The gross income in question includes fixed/regular salaries and allowances as well as similar rewards determined according to company regulations or employment contracts.
Workers who are entitled to receive the PPh 21 DTP facility are certain permanent employees and certain non-permanent employees who receive wages below IDR 10 million per month.
For certain non-permanent employees who receive wages on a daily, weekly, unit, or bulk basis, they are entitled to receive facilities if the average wage value in one day does not exceed Rp500,000.
Workers who receive the PPh 21 DTP facility, both permanent and non-permanent employees, must have a Tax Identification Number (NPWP) or Population Identification Number (NIK) that is integrated with the administration system of the Directorate General of Taxes (DJP).
Employees also cannot receive other PPh 21 DTP incentives based on tax provisions.
Regarding the mechanism for collecting taxes, Article 5 of PMK 105/2025 states that the PPh 21 deducted from employee income is paid in cash by the employer at the time of payment of income. The obligation remains in force even if the employer provides PPh 21 allowances or bears PPh 21 for employees.
"The payment of cash income tax 21 borne by the government is not taken into account as taxable income," reads Article 5 paragraph (2) of PMK 105/2025.
Employers must also make proof of deduction for the provision of PPh 21 DTP facilities and report it in the PPh Pasal 21 Period Notification Letter (SPT).
PMK 105/2025 was set on December 29, 2025 by Minister of Finance Purbaya Yudhi Sadewa and promulgated on December 31, 2025.
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