Central Java Labour Alliance Rejects JHT Tax: 'It's for Survival, Not Splurging'

The Chair of the Indonesian Trade Union Congress (KASBI) for Central Java Province, Mulyono, has urged the government to abolish taxes on the Old Age Security (JHT) programme. He stressed that the majority of workers do not use JHT funds for extravagance, but rather to sustain their lives after they are no longer employed.

“The government must introspect, do not impose taxes on the poor, especially workers. Because this will be detrimental to all of us, it is a heavy burden,” Mulyono said during an interview about the JHT tax, on the sidelines of his participation in a mass demonstration with the Central Java Guyub alliance in front of the Central Java Governor’s Office in Semarang on Thursday (23/7/2026).

He added that JHT is a fund accumulated from workers’ monthly wages. “JHT is not something we use just for fun. JHT is for our future livelihood,” he stated.

According to him, the imposition of taxes on JHT needs to be reviewed. Mulyono argued that the government should instead focus on pursuing taxes from the wealthy.

“We demand that taxes for labourers be zeroed out. Not just JHT. When we receive severance pay, the company has already deducted taxes from it. So, everything related to workers should be abolished, not just JHT, but also deductions on severance pay, including wages, should be eliminated,” Mulyono said.