The government is finalizing the Income Tax Article 21 borne by the government (PPh DTP) incentive program through 2026 for workers in labor-intensive and tourism sectors. This was conveyed by Coordinating Minister for Economic Affairs, Airlangga Hartarto, following a meeting at Wisma Danantara, Jakarta, on Wednesday (October 1, 2025).

“For the tourism sector, the Ministerial Regulation on PPh 21 has already been prepared, and for salaries under IDR 10 million, the income tax will be covered by the government,” he explained.

With the inclusion of the tourism sector, Airlangga stated that the additional incentive will benefit 552,000 workers.

“This will cover 552 thousand employees in hotels, restaurants, and cafés,” he added.

Previously, workers in labor-intensive sectors, such as textiles, footwear, ready-made garments, leather, leather products, and furniture, with salaries up to IDR 10 million, have already received 100% PPh DTP incentives since the issuance of Minister of Finance Regulation Number 10 of 2025 on February 4, 2025.

In 2026, they will receive the same tax incentives again, targeting 1.7 million workers. The budget allocation for this program next year is set at IDR 800 billion.