Prabowo Instructs Continuation of Economic Incentives and Internship Programmes into 2027
President Prabowo Subianto has provided directives regarding several employment programmes and economic incentives that are to be continued or expanded in 2027. The government is currently finalising the implementation schemes and the necessary budget requirements.
“The President has also provided direction regarding programmes to be launched in 2027. Programmes that have been implemented this year will be continued in 2027,” stated the Coordinating Minister for Economic Affairs, Airlangga Hartarto, during a press conference at the Presidential Palace complex, Jakarta, on Wednesday (30/09/2026).
In the field of employment, the government will continue the internship programme under the Ministry of Manpower, targeting 150,000 participants. Additionally, vocational programmes will proceed with a target of reaching 300,000 people.
The government will also continue the Income Tax (PPh) Article 2nd reduction facility for workers earning below Rp 10 million. While this facility is currently provided to workers in the labour-intensive and tourism sectors, the scope is planned to be expanded to all sectors in 2027.
“This will continue next year and be provided to approximately 7.5 million workers. While it is currently given to the labour-intensive and tourism sectors, next year it will be extended to all sectors with salaries below Rp 10 million,” Airlangga explained.
Furthermore, the government is calculating adjustments to the Non-Taxable Income (PTKP) threshold, taking inflation levels into account. According to Airlangga, these calculations are currently being discussed with the Minister of Finance.
In the housing sector, the Government-Borne Value Added Tax (PPN DTP) facility will continue in 2027. This facility applies to house purchases up to Rp 2 billion, including a scheme for houses priced up to Rp 5 billion, based on an incentive value of Rp 2 billion.
Airlangga mentioned that the government is also finalising the continuation of several worker protections, including policies regarding discounts on Work Accident Insurance (JKK) and Death Benefits (JKM) contributions, as well as increasing Job Loss Insurance (JKP) benefits for six months. The benefit amounts will be adjusted based on wage groups and are still being finalised with the Ministry of Finance.
In addition to existing programmes, the government is preparing a new scheme for subsidised mortgages (KPR) for individuals with a fixed income of approximately Rp 17 million. Under this scheme, the public can obtain home ownership credits with a 6 per cent interest rate for houses priced up to Rp 500 million.
“Previously, this programme was prepared for MSME actors with irregular incomes. Now, it is for those with fixed incomes, and the house prices that can be purchased are up to Rp 500 million,” said Airlangga.
Furthermore, the government is preparing regulatory adjustments for the jewellery industry, specifically regarding the standard purity of precious metals that can utilise VAT facilities. The current standard of 99.99% purity will be adjusted to 99.9% through changes in government regulations.
Airlangga added that the government will prepare various technical regulations in the fourth quarter of 2026 so that these programmes can be promptly announced and implemented. The budget requirements for the entire programme are still being reviewed by the Minister of Finance.
“The budget is being reviewed again by the Minister of Finance; it is approximately Rp 31 trillion,” Airlangga noted.