Indonesia is sending a clear signal to the global market: the government is actively implementing a pro-business strategy to improve its economic landscape.
The government has rolled out a new economic package designed to stimulate the economy and create more jobs, with a focus on helping out small businesses, tourism workers, and those in labor-intensive industries.
Key Programs to Boost Indonesia Economy
In a press conference on Monday, September 15, 2025, the Coordinating Ministry for Economic Affairs introduced the new ‘8 + 4 + 5’ Economic Package, which includes several key programs that will be in effect until 2026.
Here’s a closer look at what the programs are all about:
1. Extended 0.5% Final Income Tax for MSMEs
The government is extending the 0.5% Final Income Tax benefit for individual MSME (Micro, Small, and Medium Enterprises) taxpayers until 2029. The goal is to lighten their tax burden and make administrative obligations simpler.
2. Government-Borne Income Tax for Tourism Workers
The government will cover the income tax (known as PPh Pasal 21) for workers in the tourism sector who earn up to IDR 10 million per month. An estimated budget of IDR 480 billion per year has been allocated to help these workers maintain their purchasing power and support the sector’s recovery.
3. Acceleration of Deregulation for Government Regulation No. 28/2025
This program aims to fast-track the implementation of Government Regulation No. 28/2025 into the Online Single Submission (OSS) system. The regulation itself is designed to make business permits simpler and faster, creating a more favorable environment for investment.
4. Discount on BPJS Employment Insurance
Besides adding the housing support for BPJS Employment, President Prabowo Subianto is also extending the 50% discount on the work-accident insurance for labor-intensive industries. This extension will last until January 2026.
5. The Urban Program
This new program focuses on improving residential areas and providing suitable spaces for the gig economy. The first phase will kick off in Jakarta before expanding to other major cities, including those in Java, Banten, Bali, Manado, Makassar, and Batam. The program is being funded by Jakarta’s contingency fund, worth IDR 2.7 trillion.
Take Action on Your Investment
Such ambitious programs are more than just stimulus; they represent a strategic, long-term commitment to streamlining bureaucracy, supporting key industries, and fostering a dynamic economy.
By focusing on critical areas such as tax relief, business permits, and workforce support, the government is paving the way for sustainable growth and new investment opportunities. This is the right moment for foreign businesses to solidify their presence or expand their footprint in Indonesia.
However, to fully capitalize on this momentum, expert local guidance is invaluable. With a comprehensive understanding of Indonesia’s legal and business landscape, Seven Stones Indonesia has assisted in establishing over 1,400 Foreign Direct Investment companies in the country. Our services, from company incorporation and business permit applications, to tax & accounting, staff recruitment, and immigration services, are designed to help you simplify your setup.
Reach out to our Whatsapp to schedule your first free consultation with our team. Or email us at [email protected] to learn more about our corporate legal services.