No Salary Tax Deductions: Workers and Industry Feel the Benefits of PPh 21 DTP

Nganjuk, VIVA – Manufacturing industry players and workers are directly experiencing the benefits of the government’s Income Tax Article 21 Borne by the Government (PPh 21 DTP) incentive. The policy is expected to maintain workers’ purchasing power while driving business growth in Indonesia.

During a working visit by the Ministry of Finance to the factory site in Nganjuk on Thursday, 16 April 2026, Inge Diana Rismawanti, Director of Dissemination, Services, and Public Relations at the Directorate General of Taxes, stated that the government’s presence through fiscal policies like PPh 21 DTP is closely linked to efforts to reduce poverty rates, unemployment, and economic inequality.

“If we talk about economic growth and how the government is present, it means we are trying to erode the levels of poverty, unemployment, and inequality,” she said.

Inge explained that the PPh 21 DTP programme was first implemented in 2025. However, its realisation was not optimal, so it has been continued in 2026 with a larger budget, and the high enthusiasm from industry players has prompted the government to extend this tax incentive programme.

“In 2025, the budget was nearly Rp400 billion, but not all of it was used. Due to many requests, the programme is continued in 2026 with a budget of nearly Rp500 billion,” Inge clarified.

She hopes that the incentive can be maximally utilised by business actors until the end of the year. Inge emphasised that the incentive targets permanent employees with a maximum income of Rp10 million per month, while non-permanent workers have a limit of an average wage of Rp500,000 per day or no more than Rp10 million per month.

Through this scheme, the tax that should be deducted from employees’ salaries is instead borne by the government, so workers receive a larger income. The incentive is provided in cash form, allowing workers to directly feel the benefits.

“I once met an employee who received the PPh 21 DTP incentive and felt very helped. They would surely say, ‘It’s quite helpful, Madam, to add for buying rice.’ Especially since it’s given in cash, which is highly appreciated by them (the workers),” Inge remarked.

Hoo Yanto Andrian, President Director of PT Mitra Saruta Indonesia, said that the tax incentive has a real impact on both employees and the company. Currently, the company, which operates in the textile sector, employs around 1,700 workers supported by modern automatic machines to optimise production.