Jakarta – As we enter 2026, the government has confirmed the continuation of economic stimulus policies to maintain public purchasing power and support business sustainability. One of the main instruments being renewed is the final Income Tax (PPh) scheme for Micro, Small, and Medium Enterprises (MSMEs) at 0.5 percent of gross income.
This policy is an important part of the 2026 Economic Package, which is designed to maintain the momentum of national economic growth amidst global dynamics that are still full of uncertainty.
Coordinating Ministry for Economic Affairs Spokesperson Haryo Limanseto stated that the government is currently finalizing various regulations and budget allocations to ensure the continuation of economic stimulus in 2026. Several strategic programs are being developed to ensure their continuity and provide certainty for businesses.
“The government is currently finalizing preparations for the economic package program, which will continue in 2026. This includes the national internship program, the utilization period, and the beneficiaries of the 0.5 percent final income tax incentive for MSME taxpayers until 2029,” Haryo said.
Haryo added that the government has also established three timeframes for utilizing the 0.5 percent final income tax. First, for individual taxpayers, with a maximum period of seven years.
Second, for corporate taxpayers in the form of cooperatives, CVs, firms, village-owned enterprises (BUMDes), joint-owned enterprises (BUMDes), or sole proprietorships with a maximum term of four years. Third, for corporate taxpayers in the form of limited liability companies with a maximum term of three tax years.
“The provisions regarding final income tax incentives for MSMEs are regulated through Government Regulation Number 55 of 2022,” he said.
In line with this, Coordinating Minister for Economic Affairs Airlangga Hartarto emphasized that the 0.5 percent final income tax incentive for MSMEs will continue into 2026. This incentive applies to MSMEs with annual turnover of up to IDR 4.8 billion. The government has even confirmed that the policy will be extended until 2029.
“The final tax is half a percent, and it will continue until 2029. So, we’re not extending it by one year, but rather providing certainty until 2029,” said Airlangga.
Meanwhile, Finance Minister Purbaya Yudhi Sadewa highlighted various global and domestic economic challenges faced throughout 2025. He assessed that the government had successfully anticipated these pressures by distributing a measured stimulus package, maintaining fiscal discipline, and ensuring investment remained productive.
“We have launched an economic stimulus package to maintain household purchasing power, support MSMEs, labor-intensive sectors, housing, and the automotive sector, among other things, and electricity tariff discounts reaching Rp33.3 trillion,” he said.
With these various achievements, the government is committed to continuing the MSME incentive program as a key instrument for maintaining public purchasing power and expanding employment opportunities. The sustainability of these incentives is expected to provide business certainty, increase MSME confidence, and strengthen the foundation of the national economy in 2026 and beyond.
