Finance Minister Purbaya: Tax Incentives for Writers to Boost Long-Term Economic Growth

Finance Minister Purbaya Yudhi Sadewa stated that the writer tax incentive policy is not merely a fiscal stimulus but a strategic investment for long-term economic growth. The policy aims to enhance human capital through improved literacy and the production of both scientific and fictional works.

Meeting at the Coordinating Ministry for Economic Affairs office in Jakarta on Tuesday (26 May), Purbaya explained that Indonesia’s writer population remains limited, especially in scientific fields. The tax relief is intended to create an ecosystem encouraging greater productivity in writing and book publishing.

‘The impact on economic growth is not short-term but long-term. Perhaps after a book is published for one or two years, readers become more knowledgeable. This is an effort to enlighten the nation’s life,’ Purbaya said.

The Finance Minister added that the tax deduction for writers aims to diversify reading materials in Indonesia. Credible information sources are crucial amid the surge of unverified social media content.

‘The core aim is for Indonesian writers to be more active in creating works due to lower tax burdens,’ he added. The government has prepared an economic stimulus package including a 1.5% final income tax (PPh) incentive specifically for writers.

Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the writer incentives are part of President Prabowo Subianto’s campaign promises. Alongside the literacy sector, the government has introduced transport stimulus measures such as discounted air and land tickets for school holidays and the Christmas and New Year (Nataru) period.

Airlangga expressed optimism that these policies, including national internship and vocational programs, would significantly drive economic growth. ‘All these measures are expected to provide strong stimulus in the second quarter of this year,’ he concluded. (Ant/H-3)