Government announces Q4 2026 stimulus package (provisional Rp31 trillion): income-tax relief for workers under Rp10 million to be extended to all sectors, PTKP under discussion — no regulation yet

On 4 October 2026 the Coordinating Ministry for Economic Affairs (spokesperson Haryo Limanseto) announced a set of programmes agreed at a meeting chaired by President Prabowo with Coordinating Minister Airlangga Hartarto and the Finance Minister. The provisional allocation is about Rp31 trillion, still being reviewed by the Finance Ministry. For employers the relevant item is income tax: the PPh Article 21 reduction for workers earning under Rp10 million a month is to be extended to all sectors, covering 7.5 million workers, and an adjustment to the non-taxable income threshold (PTKP) is being discussed with the Finance Ministry. The release gives no regulation number, start date or period for either, and we have found no regulation implementing them as of 20 October. The rest of the package covers rice aid for October–December 2026, a three-month wage subsidy of Rp300,000 a month for 13.3 million workers, housing VAT incentives extended to 2027, contribution discounts for non-wage workers, and internship and vocational programmes.

Key points

• Source and status: press release HM.02.04/331/SET.M.EKON.3/10/2026 of the Coordinating Ministry for Economic Affairs, Jakarta, 4 October 2026; Antara reported it on 5 October. Its wording describes programmes being prepared, drafted, discussed or continued; it is not a regulation.
• Income tax, PPh Article 21: the reduction for workers earning under Rp10 million a month is 'expanded to all sectors' for 7.5 million workers. The release states no period; it sits in the paragraph that begins with the programmes continuing in 2027, so we read it as a 2027 measure, which we have not confirmed.
• The relief in force today: PMK 105/2025, established 29 December 2025 and in force 31 December 2025, makes PPh 21 borne by the government for tax periods January to December 2026 for employers in footwear, textiles and garments, furniture, leather goods and tourism with a KLU listed in its annex; for permanent employees the fixed gross pay limit is Rp10 million a month, and employees need an NPWP and/or NIK integrated with DJP's system and must not receive another PPh 21 DTP incentive (Ortax).
• PTKP: an adjustment is being discussed with the Finance Ministry; no figure or date has been given. A change in the PTKP would alter withholding for every employee, not only those under Rp10 million.
• Housing and mortgages: the VAT-borne-by-government (PPN DTP) facility is extended to 2027 for houses up to Rp2 billion, and for the first Rp2 billion of the price of houses up to Rp5 billion; a 6%-interest subsidised mortgage for fixed-income earners of about Rp17 million for houses up to Rp500 million is being prepared.
• Workers and others: a wage subsidy (BSU) of Rp300,000 a month for three months for 13.3 million workers, budgeted at nearly Rp12 trillion; the work-accident and death contribution discount for non-wage workers continues in 2027; use of the job-loss benefit (JKP) for six months is adjusted to income; internships for 150,000 people and vocational training for 300,000 in 2027; rice aid of 10 kg a month for October–December 2026 (Rp17.5 trillion, 33,244,408 family beneficiaries); a bank-account programme for adults, focused on income deciles 1–4; and a new VAT standard for 99.9% precious metal being drafted.

Sources

• Kementerian Koordinator Bidang Perekonomian — Dorong Pertumbuhan 2027, Pemerintah Gulirkan Rangkaian Program Pelindungan Masyarakat dan Stimulus Ekonomi (press release HM.02.04/331/SET.M.EKON.3/10/2026, 4 October 2026; primary source)
• ANTARA News — Pemerintah gulirkan sejumlah stimulus ekonomi untuk kuartal IV 2026 (11:32 WIB, 5 October 2026)
• Ortax — PPh 21 DTP Sektor Tertentu Berlaku Sepanjang Tahun 2026, Ini Rincian Syaratnya (PMK 105/2025; 5 January 2026)