Wow! The Indonesian Government Will Cover Taxes for Hotel and Restaurant Workers

Airlangga Hartarto FOTO: Twitter/@airlangga_hrt

The government is planning a policy to expand the government-funded Article 21 income tax incentive, or PPh DTP, for the hotel, restaurant, and cafe sector.

This policy expansion aims to strengthen the previous PPh DTP incentive policy, which was provided to workers in labor-intensive sectors such as textiles, footwear, and furniture.

“The expansion of government-funded income tax, which is currently in place in labor-intensive industries, will be pushed to other sectors as well,” said Coordinating Minister for Economic Affairs Airlangga Hartarto after a limited coordination meeting with Finance Minister Purbaya Yudhi Sadewa at his office on Friday (September 12, 2025).

“We will hold a meeting on Monday and we will finalize the total amount. And this will last until the end of the year; we will push everything through until the end of the year,” Airlangga emphasized.

Since the first and second quarters of 2025, the government has indeed disbursed various types of economic stimulus packages to support people’s purchasing power, including government-borne Article 21 Income Tax incentives (PPh Article 21 DTP), but specifically for employees in labor-intensive sectors, such as textiles, footwear, and furniture.

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