Government Launches 2025 Economic Package: Full Statement from Coordinating Minister Airlangga Hartarto
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JAKARTA, Investortrust.id — The government has officially launched the 2025 Economic Package, which consists of eight acceleration programs, four continuation programs in 2026, and five flagship initiatives designed to boost job creation.
The package was announced by Coordinating Minister for Economic Affairs Airlangga Hartarto, accompanied by Finance Minister Purbaya Yudhi Sadewa, following a meeting with President Prabowo Subianto in Jakarta on Monday. Airlangga stressed that the program is intended to safeguard household purchasing power, strengthen the real sector, and expand employment opportunities nationwide.
To provide a comprehensive picture, here is the full statement from Coordinating Minister for Economic Affairs Airlangga Hartarto delivered at the press conference on Monday, Sept 15, 2025:
Coordinating Minister for Economic Affairs Airlangga Hartarto
Assalamu’alaikum warahmatullahi wabarakatuh.
I am accompanied here by Finance Minister Purbaya. Earlier today we attended a meeting with the President, which discussed the measures to be implemented under what is called the 2025 Economic Package. This consists of eight acceleration programs for 2025, four programs that will continue in 2026, and five flagship initiatives aimed at job creation.
Programs for 2025 (Acceleration Phase)
From the eight acceleration programs, the first is an apprenticeship scheme for recent university graduates, with a maximum graduation age of one year, whether bachelor’s or diploma degree holders. These fresh graduates will be linked and matched with the industrial sector to ensure direct benefit.
The initial phase will involve 20,000 people, and during the work placement they will receive a stipend equivalent to the provincial minimum wage.
This program will run for six months, with a budget allocation of Rp198 billion.
The second program concerns the expansion of Article 21 Income Tax (PPh 21) borne by the government, which has already been applied in labor-intensive industries. This will be extended to tourism, hotels, restaurants, and cafés.
The target beneficiaries are 552,000 workers, who will receive full coverage of PPh 21 for the remaining three months of the 2025 tax year. The budget for this is Rp120 billion.
The third program is the continuation of food assistance for two months, providing 10 kilograms of rice in October and November. This will later be evaluated for possible extension into December. The funding required is Rp7 trillion.
The fourth program involves subsidized contributions to the Work Accident Insurance (JKK) and Death Insurance (JKM) schemes for informal workers. These include online transport drivers, motorcycle taxi drivers, chauffeurs, couriers, and logistics workers.
The target is 731,361 people. They will receive a 50 percent discount on JKK and JKM contributions. We hope this will benefit ride-hailing drivers, with funding of Rp35 billion provided by BPJS. JKK includes death benefits of 48 months’ wages, permanent disability compensation of 56 months’ wages, scholarships of Rp174 million for two children, and total death insurance benefits of Rp42 million.
The fifth program enhances housing support through BPJS Ketenagakerjaan. As we know, BPJS provides housing finance, and interest rates will be reduced from BI Rate plus 5 percent to BI Rate plus 3 percent. For beneficiaries, this can be used for mortgage payments or down payments.
For developers, the rate will fall from BI Rate plus 6 percent to BI Rate plus 4 percent. This is accompanied by SLIK relaxation from the Financial Services Authority (OJK). The target budget is Rp150 billion, borne by BPJS. The target this year is 1,000 beneficiaries, with a significant scale-up planned for next year to support the President’s program to provide three million homes.
The sixth program is regulatory reform under Government Regulation 28, which accelerates integration of ministerial and regional spatial planning (RDTR) into the OSS system. The number of regions covered will increase from just 50 cities to around 170 districts, with further expansion expected next year.
For each RDTR, Rp3.5 billion in funding is allocated. The Geospatial Information Agency will provide data so that OSS approvals can be deemed positive by default within 20 working days. This means that if the process is not completed, permits will automatically apply. The total estimated funding is Rp1 trillion.
The seventh program is pilot projects in major cities. One example is in Jakarta, supporting the gig economy through the provision of co-working spaces. Similar pilots will follow in other regions, including West Java, Jakarta, Tabanan in Bali, Manado, Makassar, and Batam. In Jakarta, this will use local budget funds, supplemented by creative economy financing.
Continuation Programs for 2026
Moving on, there are four continuation programs to be carried out in 2026.
The first is the extension of the 0.5 percent final income tax for micro, small, and medium enterprises (MSMEs) with annual turnover up to Rp4.8 billion. This will now be extended until 2029, providing certainty rather than yearly renewals.
In 2025, Rp2 trillion is allocated. According to the Ministry of Finance, 542,000 taxpayers are already registered. A revision to the government regulation is still required.
The second continuation is the extension of PPh 21 DTP for the hospitality sector (hotels, restaurants, cafés). This will be extended through 2026, ensuring certainty for workers in this sector with salaries below Rp10 million. The budget is Rp480 billion.
The third is the extension of PPh 21 DTP for labor-intensive industries such as footwear, textiles, apparel, furniture, and leather. This applies to 1.7 million workers earning below Rp10 million. The budget this year is Rp800 billion, with continuation next year.
The fourth is the expansion of subsidized JKK and JKM contributions for informal workers. This will no longer be limited to ride-hailing drivers but will also cover farmers, traders, fishermen, construction workers, and domestic workers. The target is 9.9 million workers with an estimated budget of Rp753 billion.
Flagship Job-Creation Programs
In addition, the President discussed with us the flagship employment programs.
The first is the Village Cooperative Merah Putih program, targeting 80,000 new employees and projected to absorb 681,000 workers, with the goal of reaching 1 million by December 2025.
The second is the Fishermen’s Village Merah Putih program, targeting 100 villages this year and projected to absorb 8,645 workers. In the long term, expansion to 4,000 locations could create 200,000 jobs.
The third is the revitalization of shrimp ponds along the northern coast, covering 20,000 hectares and employing 168,000 people.
The fourth is modernization of fishing vessels, with 1,000 units to be upgraded, creating around 200,000 new jobs. This includes 1,000 vessels of 30 gross tons (GT), 200 vessels of 150 GT, 200 vessels of 200 GT, 170 vessels of 300 GT, 10 vessels of 600 GT, and two vessels of 2,000 GT, allocated to state-owned enterprises or the Jaladri program.
The fifth is a people’s plantation program covering 870,000 hectares, managed by relevant ministries and the Ministry of Agriculture. This is expected to create over 1.6 million jobs through replanting priority commodities such as sugarcane, cocoa, coconut, coffee, cashew, and nutmeg.
Finally, the Finance Minister proposed the formation of an Acceleration Team for Priority Programs, led by the Coordinating Minister for Economic Affairs and the Minister of Development, with deputy leadership from the Finance Minister, the Investment Minister and head of BKPM, and the Minister of National Development Planning (Bappenas), joined by other related ministers. This team’s duties and functions will be clarified by the Finance Minister.
On this occasion, I extend my appreciation to the Finance Minister, the Minister of National Development Planning, and all parties involved.
