Purbaya Awaits Prabowo's Direction on Tax Exemption for Workers' Eid Bonuses

Purbaya Awaiting Instructions from Prabowo Regarding Tax Exemption for Workers’ Eid Bonus

• [Mohammad Yudha Prasetya]

Jakarta, VIVA – President of the Confederation of Indonesian Trade Unions (KSPI) and President of the Labour Party, Said Iqbal, has urged the government to exempt Eid bonuses (THR) from income tax (PPh) under Article 21.

When asked about this request from workers, Finance Minister Purbaya Yudhi Sadewa stated that he had not yet heard about it.

However, Purbaya assured that his ministry would first await instructions from President Prabowo regarding the possibility of fulfilling the workers’ demands.

“I haven’t heard about it. I will wait for instructions from President Prabowo,” said Purbaya at the Ministry of Finance, Jakarta, on Tuesday, 24 February 2026.

Previously, Said Iqbal had emphasised that the application of Article 21 income tax to Eid bonuses was considered a significant burden for workers.

This is because the Eid bonus is usually used by workers to cover expenses for travelling home during the Eid al-Fitr holiday.

Therefore, Said, representing the workers, urged the government to exempt Eid bonuses from deductions under the name of Article 21 income tax.

“The Labour Party and KSPI urge that, starting this year and in subsequent years, Eid bonuses should not be subject to Article 21 income tax,” said Iqbal in a press teleconference.

“Hopefully, this will be heard by President Prabowo Subianto. What’s the point of receiving an Eid bonus if it is then subject to tax deductions? These are ordinary people, poor people. Not absolutely poor, but close to being poor.”