As part of Indonesia’s post-pandemic economic recovery and its effort to expand employment in labour-intensive sectors, the Government of Indonesia has introduced a fiscal policy in the form of income-tax incentives for eligible workers throughout 2025. On 28 October 2025, the government further extended this facility to workers in the tourism sector, including hotels, restaurants, and cafés, hrough Minister of Finance Regulation No. 72/2025. The incentive is intended to strengthen workers’ purchasing power, stimulate economic growth, and enhance employment absorption within the tourism industry..
Purpose of the Income-Tax Incentive
The tax incentive framework is governed by Minister of Finance Regulation No. 72/2025 on the Amendment to Minister of Finance Regulation No. 10/2025 on Article 21 Income Tax on Certain Income Borne by the Government as Part of the 2025 Economic Stimulus (“PMK 72/2025”).
This regulation expands the earlier incentive scheme, which initially covered four labour-intensive industries under PMK 10/2025.
Income tax (PPh) remains a mandatory obligation for individuals and corporate taxpayers on income earned within a single financial year. PMK 72/2025 reinforces that obligation through Article 2 paragraph 1, which stipulates:
“Income received or obtained by employees in connection with employment must be subject to withholding of Article 21 Income Tax by employers in accordance with Article 21 of the Income Tax Law.”
Article 3 paragraph 1 point a of PMK 72/2025 also sets out the eligibility requirements for employers wishing to access this incentive, including operating in the footwear, textiles and garments, furniture, leather and leather products, or tourism sectors, and possessing the appropriate business-classification code.
By extending the incentive to the tourism industry, the government aims to enhance social welfare, elevate workers’ purchasing power, and support national economic stability. The incentive also serves as a fiscal-fairness measure, particularly for employees within specific income brackets. Accordingly, this tax relief is positioned not merely as a tax-reduction facility but as a strategic policy instrument supporting sustainability and sectoral resilience, particularly for tourism-industry workers.
Duration of the Incentive
PMK 72/2025 updates the timeline set under PMK 10/2025, which provided incentives for four labour-intensive sectors from January to December 2025. Under Article 4A point b of PMK 72/2025, the income-tax incentive for tourism-sector workers applies from October 2025 to December 2025.
The Coordinating Minister for Economic Affairs, Airlangga Hartarto, confirmed that the government has allocated IDR 120 billion for the Article 21 Income Tax facility targeting the hotel, restaurant, and café sectors in the 2025 fiscal year. The scheme is expected to cover up to 552,000 workers for the remainder of the 2025 tax year.
The government also intends to continue this incentive into 2026. However, it is important to note that not all tourism-sector workers automatically qualify: only those meeting specific regulatory criteria will be eligible.
Also read: Pengurangan Beban Pajak Secara Legal dengan Tax Planning
Eligibility Criteria for Tourism-Sector Workers
Only workers who meet the requirements under PMK 10/2025 and PMK 72/2025 may receive the incentive. PMK 10/2025 classifies eligible employees into two categories: certain permanent employees and certain non-permanent employees.
- Certain Permanent Employees
Under Article 4 paragraph 1 PMK 10/2025, a permanent employee must:
- Possess a Taxpayer Identification Number (NPWP) and/or National Identification Number (NIK) administered by the Directorate General of Population and Civil Registration and integrated with the Directorate General of Taxes;
- Receive monthly fixed income (salary, allowances, or regular remuneration) not exceeding Rp 10,000,000; and
- Not be receiving any other Article 21 Income Tax incentive borne by the government.
- Certain Non-Permanent Employees
- Under Article 4 paragraph 5 PMK 10/2025, a non-permanent employee must:
- Possess an NPWP and/or NIK integrated with the tax administration system;
- Receive wages not exceeding Rp 500,000 per day if paid daily, weekly, by unit, or by output; or not exceeding Rp 10,000,000 per month if paid monthly; and
- Not be receiving any other Article 21 Income Tax incentive borne by the government.
The provision of Article 21 Income Tax incentives for tourism-sector workers is a targeted government intervention to support economic recovery and improve workers’ purchasing power. Applicable until December 2025, this relief reduces employees’ tax burden, allowing them to retain a larger portion of their income. In turn, this is expected to improve living standards, strengthen workforce motivation, and contribute to broader economic-stability goals within Indonesia’s tourism industry.***
Also read: Comparative Analysis of Tax Systems in Indonesia and Malaysia
Regulations:
- Peraturan Menteri Keuangan Nomor 72 Tahun 2025 tentang Perubahan atas Peraturan Menteri Keuangan Nomor 10 Tahun 2025 tentang Pajak Penghasilan Pasal 21 atas Penghasilan Tertentu yang Ditanggung Pemerintah dalam Rangka Stimulus Ekonomi Tahun Anggaran 2025 (“PMK 72/2025”)
- Peraturan Menteri Keuangan Nomor 10 Tahun 2025 tentang Pajak Penghasilan Pasal 21 atas Penghasilan Tertentu yang Ditanggung Pemerintah dalam Rangka Stimulus Ekonomi Tahun Anggaran 2025 (“PMK 10/2025”)
References:
- PPh 21 DTP Resmi Diperluas bagi Karyawan Sektor Pariwisata dan Perhotelan. Tempo. (Diakses pada 3 November 2025 Pukul 09.35 WIB).