The government is accelerating its 2026 economic package, prioritizing employment and MSMEs
Jakarta – The government is ensuring the sustainability of the 2026 Economic Package by continuing to provide various incentives aimed at maintaining economic growth, strengthening Micro, Small, and Medium Enterprises (MSMEs), and expanding job creation. This policy is designed to protect public purchasing power while maintaining the resilience of the national employment sector.
Coordinating Ministry for Economic Affairs Spokesperson Haryo Limanseto said the government is finalizing several key policies that will be continued and expanded next year.
“The government is currently finalizing preparations for the Economic Package program, which will continue in 2026,” Haryo said.
Several programs continuing in 2026 include the National Internship Program, adjustments to the timeframe and expansion of recipients of the 0.5 percent Final Income Tax (PPh) incentive for MSMEs until 2029, and an extension of the Government-Borne Article 21 Income Tax (DTP) for workers in the tourism sector and labor-intensive industries.
This policy is expected to maintain the sustainability of MSMEs as the largest absorber of labor, while maintaining existing employment opportunities.
The government also extended the Government-Borne VAT (DTP) for the housing sector and continued and expanded discounts on Work Accident Insurance (JKK) and Death Insurance (JKM) contributions for non-wage earners (BPU). These social security incentives target informal sector workers such as online motorcycle taxi drivers, chauffeurs, couriers, and logistics workers to ensure their protection and productivity.
Throughout 2025, the implementation of the Economic Package demonstrated positive results in strengthening workforce readiness. The National Internship Program for university graduates enrolled 102,696 participants out of a total of 724,880 applicants across the first three batches, exceeding the initial target of 100,000 participants.
“To protect purchasing power, the government has implemented an Article 21 Income Tax (PPh) policy for tourism sector workers earning up to IDR 10 million per month. This policy is regulated by Minister of Finance Regulation No. 72 of 2025 and is already in effect,” he said.
To directly absorb labor, the government is also implementing a Cash-Intensive Labor Program. The Ministry of Public Works has disbursed Rp6.63 trillion, or 93.70 percent of its budget, employing over 25,000 people. Meanwhile, the Ministry of Forestry has disbursed Rp1.18 trillion, or 65.38 percent, employing over 16,000 people.
Going forward, the government will also develop urban economic and gig economy programs through digital platforms, targeted for implementation in 15 cities. This program is projected to become a new source of job creation, particularly for MSMEs and informal sector workers, while also affirming the government’s commitment to expanding employment opportunities sustainably.
