Indonesia Rolls Out 8+4+5 Economic Programs to Strengthen Growth and Employment

The government has officially launched the 2025 economic stimulus package as a strategic effort to address global challenges, enhance the quality of economic growth, and expand job creation for the public. The initiative includes eight acceleration programs in 2025, four programs to be continued into 2026, and five flagship programs aimed at boosting employment. Coordinating Minister for Economic Affairs Airlangga Hartarto emphasized that this stimulus is not only designed to meet short-term needs but also to strengthen the furure of national economy
The programs being rolled out in 2025 include a fresh graduate internship program targeting participants with stipends equal to the provincial minimum wage as well as income tax subsidy for the hospitality sectors. The government will continue food assistance through rice distribution in October and November, while extending subsidies for work accident and death insurance premiums to non-salaried workers. Additional measures include reduced-interest housing loans through BPJS Housing Program, business licensing deregulation, integration of spatial planning into the OSS system, among others.
In 2026, the government will extend the 0.5 percent final income tax incentive for SMEs with revenues up to IDR 4.8 billion - now valid until 2029 along with extended PPh 21 subsidies for both the tourism sector and labor-intensive industries. Additionally, subsidies for work accident and death insurance will be broadened to farmers, traders, fishermen, construction workers, and domestic workers, targeting nearly 10 million beneficiaries. Finance Minister Purbaya Sadewa ensured that this stimulus package will not place any additional pressure on the 2025 state budget deficit.