Gotrade News - Indonesia's government has increased the budget for its income tax incentive program to nearly Rp500 billion ($31 million) for 2026. The increase from Rp400 billion targets workers in labor-intensive sectors to protect purchasing power.
Key Takeaways:
- PPh 21 DTP incentive budget raised from Rp400 billion to nearly Rp500 billion for 2026
- The incentive covers 133 labor-intensive business classifications including textiles and tourism
- Coretax system streamlines tax filing with pre-populated data features
DJP Director of Outreach Inge Diana Rismawanti announced the budget increase. "The incentive allocation next year increases to nearly Rp500 billion," she stated according to Kompas.
Under the PPh 21 DTP scheme, the government covers income tax for employees in designated sectors. Workers receive higher take-home pay as the tax deduction is absorbed by the state.
The incentive targets 133 labor-intensive business classifications vulnerable to economic fluctuations. Covered sectors include textiles, footwear, furniture, leather goods, and tourism.
The policy aims to sustain consumer purchasing power while protecting employment stability. The previous year's allocation of Rp400 billion was not fully utilized prompting the increased budget.
Tax Filing Modernization
Alongside the incentive, Indonesia's Coretax system continues to be refined for easier annual tax filing. Pre-populated features automatically fill salary data from employers reducing the need for manual input.
The government also issued Finance Minister Regulation No. 15/2025 to simplify tax audit procedures. The regulation improves legal certainty for both tax authorities and taxpayers.
Digital technology enables objective risk analysis in determining which taxpayers need auditing. This approach makes the oversight process more selective and efficient compared to previous random methods.
Sources:
- Kompas, Kabar Baik untuk Pekerja! PPh 21 Ditanggung Pemerintah, Gaji Bersih Lebih Besar, 2026
- Kumparan, Pemeriksaan Pajak dan Kepercayaan Publik, 2026
- Kumparan, Stop Antre! Checklist 5 Menit Biar Lapor SPT di Coretax Makin Sat Set, 2026
