Indonesia to extend several economic stimulus policies this year

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The Government of Indonesia has made it clear thatA number of economic stimulus policies will be renewed in 2026The program is currently being refined for the purpose ofMaintaining the country's economic stability and further expanding employment opportunities.. A spokesman for the Ministry of Economic Coordination revealed that the proposed continuation of the stimulus in 2026 contains several elements.National Internship Program(ii) will be oriented towards0.5% Final Income Tax Credit for MSME TaxpayersThe duration and scope of application of the adjustment were extended to2029III is a continuation of all types ofFinancial incentivesThe

In addition, the government plans to extend21 Income Tax Payment on Behalf of the Government for Employees in Tourism and Labor-intensive Industries,Real Estate Sector VAT Government Payment PolicyThe new program will also extend and broaden the scope of the program to include the followingReduced premiums for occupational injury and death insurance for all non-salaried workers. Previously the government has introduced2025 Economic Policy Package and Employment Absorption Planwhich contains8 Accelerated 2025 Projects,4 projects extending to 2026as well as5 Core Employment Absorption ProgramsThe policy as a whole revolves aroundStabilizing the economy, safeguarding people's purchasing power and strengthening the resilience of the job marketExpand.

Policies related to 2025 have been effective on the ground: the first three batches of the National Internship Program attracted a total of724,880,000 college graduates enrolledFinal Admission102,696,000 peopleThe original schedule has been exceeded.100,000 peopletarget; monthly salaries in the tourism industryEmployees under 10 million rupiahThe Government's payment-in-lieu-of-income-tax policy was formally implemented in October-November.18.3 million beneficiary familiesSubsidized rice was distributed, amounting toMore than 348,000 tonsCompletion rate95.86%, issued at the same time2 liters/household cooking oil subsidyThe completion rate was similarly achieved95.86%The

In the area of social security, forNon-salaried workers in the transportation and logistics industry, such as online taxi drivers, freight drivers, couriers, etc.The policy of premium reductions and exemptions for workers' compensation and death insurance has benefited theOver 731,000 peoplePreferential Period CoverageOctober 2025-March 2026. In addition, the Indonesian Labor and Social Security Agency introducedHousing Plus Service Benefit Programsentence-final interrogative particleOctober 1, 2025in effect, fueled by the relaxation of lending ratesLow- and middle-income groups achieve secure tenureThe

In the area of employment, the Ministry of Public Works and Housing has implemented the following measures.Rp 6.63 trillion budgetdriveOver 25,000 people employedCompletion rate93.7%Implemented by the Ministry of ForestryRp 1.18 trillion budgetAbsorption16,000 people employedCompletion rate65.38%. At the deregulation level, the Government set up a special working group to deal with claims related to investment impediments through a unified complaint channel, which was followed up and resolved by December 202523 complaintsThe

Launched by the Government in Jakarta on December 18, 2025Urban development pilot projectsThe program is available nationwide15 cities rolled outand buildDigital Economy PlatformSupporting the development of the casual labor economy. In addition, temporary livelihood cash assistance has coveredOver 33 million beneficiary familiesCompletion rate94.8%In addition, the rate of aid distribution in the three affected provinces of Aceh, North Sumatra and West Sumatra has also reachedAround 90%The

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