Jakarta (ANTARA) – The Indonesian government continues its economic stimulus program in the second half of 2025 through several ongoing programs, such as wage subsidies and income tax (PPh) exemptions for workers in certain sectors.Coordinating Minister for Economic Affairs Airlangga Hartarto conveyed the announcement after attending a limited meeting chaired by President Prabowo Subianto, which discussed the latest national economic developments, as well as the government’s steps to maintain stability and strengthen public protection programs.”Currently, stimulus programs such as (subsidies) for workers earning under Rp10 million are already underway, and wages for labor-intensive workers. The government covers the income tax for certain sectors, and this has already benefited 1.7 million workers,” he said during a press conference at the Presidential Palace in Jakarta on Thursday.Hartarto stated that the wage subsidy program (BSU) for workers earning under Rp10 million will continue in the second half of this year.Likewise, labor-intensive programs, income tax exemptions for certain sectors, which have benefited 1.7 million workers, and housing support will continue.”Then, there is the housing financing program through the Housing People’s Business Credit (KUR). We will also promote this. We will also continue to boost the home renovation program,” he said.The government is also preparing measures to prevent potential mass layoffs.Deregulation in several industrial sectors, particularly in Java, is projected to create more than 100,000 new jobs. The government is also ensuring that employment protection facilities will continue to be provided to contract workers.Hartarto stated that Indonesia’s macroeconomic conditions remain sound following the demonstrations that turned violent last week.It is based on the rupiah exchange rate, which is around Rp16,400 per US dollar, and the stock market, which has shown a rebound after experiencing a slight correction.
Govt continues wage subsidy and income tax exemption
