The government officially introduced an aid package called the 8+4+5 Economic Stimulus.

The package consists of 8 acceleration programs for 2025, 4 continuation programs in 2026, and 5 initiatives aimed at boosting employment.

This announcement came after President Prabowo Subianto held a meeting with several economic ministers at the Presidential Palace in Jakarta on Monday (September 15, 2025).

Following the meeting, Coordinating Minister for Economic Affairs Airlangga Hartarto, accompanied by Finance Minister Purbaya Yudhi Sadewa, outlined the details of the stimulus package.

“Today’s meeting with the President discussed policies that we are introducing under the name of the economic package program,” Airlangga explained in a press conference.

Through the 8 stimulus measures, the government is aiming for 5.2% economic growth by the end of 2025.

Airlangga expressed confidence that these programs will increase government spending in the second half of the year, which is one of the key drivers of economic expansion.

“With this package, we hope government spending can be sustained and the 5.2% growth target can be achieved,” Airlangga stated.

8 Acceleration Programs for 2025

1. Internship program for university graduates covering 20,000 fresh graduates (Bachelor to Diploma level) within one year of graduation. Participants will be paid a provincial minimum wage (UMP) for six months. Budget: Rp198 billion.

2. Expansion of government-borne income tax (PPh 21 DTP) for tourism sector workers. Employees in hotels, restaurants, and cafes earning below Rp10 million will be exempted from income tax.

3. Food aid for October–November 2025, consisting of 10 kilograms of rice per household each month.

4. Subsidized JKK and JKM contributions for informal workers such as online drivers, base drivers, couriers, and logistics staff. A 50% discount will be provided to 731,361 beneficiaries for six months.

5. BPJS Employment Housing Additional Service Benefits (MLT), with loan interest reduced from BI rate +5% to BI rate +3%.

6. Cash-for-work programs under the Ministry of Transportation and the Ministry of Public Works and Housing.

7. Acceleration of PP28 deregulation, integrating RDTR spatial planning into the OSS digital system. Coverage expanded from 50 regencies/cities to 170 sub-districts, with more additions planned next year.

8. Urban Development Program, improving settlement quality and providing co-working spaces for the gig economy. Pilot projects will begin in Jakarta, followed by West Java, Central Java, East Java, Banten, Bali, Manado, Makassar, and Batam.

4 Continuation Programs for 2026

1. Extension of final income tax incentive (0.5%) for MSMEs with annual revenue up to Rp4.8 billion, valid until 2029.

2. Expanded JKK and JKM premium discounts for informal workers such as farmers, traders, construction laborers, and housewives.

3. Prolonged income tax exemption (PPh 21 DTP) for tourism workers.

4. Extension of PPh 21 DTP for labor-intensive industries, including footwear, textiles, garments, furniture, leather, and leather goods. The government will cover tax for workers earning up to Rp10 million.

5 Employment Absorption Programs

In addition to incentives, the government also rolled out 5 flagship programs from President Prabowo to create jobs.

1. Village/Urban Cooperative Merah Putih Program. As of September 4, 2025, 80,000 new cooperatives have been established, absorbing 681,000 workers. The target is 1 million workers by December 2025.

2. Merah Putih Fishermen’s Village Program (KNMP). This year, 100 villages will join the program, employing 8,645 workers. In the long run, 4,000 fishing villages are expected to generate 200,000 jobs.

3. Revitalization of fishponds in Pantura, covering 20,000 hectares and projected to absorb 168,000 workers.

4. Modernization of 1,000 fishing vessels. Expected to create 200,000 new jobs. Includes provision of boats: 30 GT (1,000 units), 150 GT (200 units), 200 GT (200 units), 300 GT (170 units), 600 GT (10 units), and 2,000 GT (2 units) for state-owned enterprises/Jaladri operators.

5. People’s Plantation Program. Replanting 870,000 hectares led by the Ministry of Agriculture, projected to open 1.6 million jobs in 2 years. Priority crops include sugarcane, cocoa, coconut, coffee, cashew, and nutmeg.