Aqila Izatul Rahman, Jakarta – The Association of All Indonesian Workers (Aspirasi) welcomes the government's policy to expand tax incentives for employees with incomes below Rp10 million. As part of the economic stimulus, the coverage of income tax incentives (PPh) under Article 21 has been expanded to include workers in the hotel, restaurant, and catering sectors.

"Tax relief for workers with incomes below Rp10 million not only eases the burden for workers but also can increase the purchasing power of the people with a more substantial income to take home," said Aspirasi President Mirah Sumirat in a press release on Thursday, September 18, 2025.

On Monday, September 15, 2025, the government announced an economic stimulus package that includes an expansion of income tax incentives (PPh) under Article 21. This policy applies to permanent workers with monthly gross incomes of no more than Rp10 million, and to non-permanent workers with daily gross incomes of no more than Rp500,000.

Aspirasi views the Minister of Finance's policy as favoring most workers and laborers with middle- to lower-income levels in Indonesia.

According to Mirah, this policy can generate a positive domino effect in strengthening the national economy. When the purchasing power of workers increases, household consumption as the main engine of the Indonesian economy is also boosted. Increased consumption will drive production. This could potentially trigger the creation of new job opportunities.

Mirah also encourages the government to strengthen state revenue by expanding the tax base for high-income groups and large companies. She believes that this must be done to maintain the principles of equality and justice.

"We will continue to monitor this policy to ensure that it truly benefits workers and becomes an instrument in strengthening social justice in Indonesia," said Mirah.

Source: https://en.tempo.co/read/2049991/workers-union-welcome-broader-tax-free-incentives-in-indonesi