Hanoi, Jan. 5 -- The Indonesian government will cover personal income taxes for workers in labour-intensive sectors throughout the 2026 fiscal year, aiming to protect household purchasing power and maintain national economic stability amid ongoing global economic uncertainties.
The Indonesian Ministry of Finance announced that this policy applies to workers with a monthly gross income not exceeding 10 million IDR (about 598 USD). Labourers' personal income tax obligations will be shouldered by the state.
The tax incentive policy outlined in the Finance Minister's decision forms part of a broader economic stimulus package aimed at protecting social welfare and enhancing the Southeast Asian economy's resilience to external shocks.
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