President Prabowo Subianto has introduced an economic package program with a total incentive value of IDR 16.2 trillion (approx. USD 990 million). The program, called 8+4+5, consists of several initiatives that will run this year and next year. These include internships for university graduates, food aid, contributions for occupational accident insurance (JKK) and death insurance (JKM) for online motorcycle taxi drivers, as well as cash-for-work schemes. 

“It consists of 8 acceleration programs in 2025, 4 programs continuing in 2026, and 5 flagship programs for employment absorption,” said Coordinating Minister for Economic Affairs Airlangga Hartarto at the Presidential Palace, Jakarta, Monday, September 15. 

Airlangga stated that the first program is internships for university graduates. Fresh graduates within 1 year of completing their degree can join the internship with a stipend equivalent to the provincial minimum wage, or IDR 3.3 million (approx. USD 200) per month. “For six months,” said Airlangga. 

The second program is the expansion of PPh 21 DTP (borne by the government) for workers in the tourism sector. The third is food aid, which will be provided for two months, from October to November. The fourth is JKK and JKM contribution assistance for online motorcycle taxi drivers, base motorcycle taxi drivers, drivers, couriers, and logistics workers, targeting 731,361 people. They will receive a 50% discount on JKK and JKM contributions for six months. The fifth is relaxation of mortgage (KPR) and apartment ownership loan (KPA) interest benefits, with a maximum set at the BI Rate plus 3%. This relaxation will be provided to 1,050 beneficiaries. The sixth program is the provision of cash-for-work schemes in projects under the Ministry of Public Works and the Ministry of Transportation from September to December 2025. The number of beneficiaries for this program reaches 609,495 people. The seventh is the acceleration of Government Regulation (PP) 28 for the integration of Ministry and Agency systems into the Online Single Submission (OSS). The eighth is a program to improve urban housing quality and provide workspaces for the gig economy. 

Meanwhile, the four programs that will continue until 2026 are extension of the 0.5% final income tax (PPh) period for MSME taxpayers, adjustment of MSME final income tax recipients, extension of PPh 21 DTP for tourism workers, PPh 21 DTP for labor-intensive workers, and continued JKK and JKM contribution discounts. 

As for the five flagship programs for employment absorption, they are Desa Merah Putih Cooperatives, Kampung Nelayan Merah Putih, revitalization of shrimp ponds on the northern coast (Pantura) of Java, modernization of fishing vessels, and people’s plantations. 

This article is published in partnership with Katadata 

Original article here