The government has officially launched the 2025 economic stimulus package. One of the contents is in the form of Article 21 Income Tax (PPh) facilities borne by the government for the tourism sector – specifically hotels, restaurants and cafes (horeca).

This policy certainly provides benefits for workers in the horeca sector, which is estimated to reach 552,000 workers. The General Chairman of the Indonesian Hotel and Restaurant Association (PHRI) Hariyadi Sukamdani also believes that the provision of this tax incentive provides space for workers in the horeca sector to increase their purchasing power.

Currently, the purchasing power of the horeca worker sector is eroded due to the stagnant performance of the tourism sector. “The tax incentives in this economic policy package can be beneficial for workers. In other words, they get a bonus,” he told SUAR in Jakarta (15/9/2025).

In agreement with Hariyadi, the Deputy Chairperson of PHRI Bali, I Gusti Agung Rai Suryawijaya, said that workers in the horeca sector were very happy to hear the news of the government-borne Article 21 income tax incentive.

This policy can boost workers' purchasing power because their income increases. Usually there is an Article 21 income tax deduction on the salary slip, but now there isn't.

“The provision of this tax incentive is very appropriate given the weakening tourism conditions, but employees can still enjoy their full salaries,” he said.

The Coordinating Minister for Economic Affairs, Airlangga Hartarto, emphasized that this policy is included in the economic stimulus package that will be disbursed in the second semester of 2025. “We will also push the expansion of tax incentives, which previously only applied to labor-intensive industries, to other sectors, especially horeca,” said Airlangga in a press conference in Jakarta, (12/9/2025).

So far, in accordance with the Minister of Finance Regulation (PMK) Number 10 of 2025, the Article 21 Income Tax (DTP) incentive has only been given to workers in labor-intensive industries. This policy applies to the tax period from January to December 2025.

Meanwhile, the provisions regarding incentive recipients still refer to the applicable regulations. Horeca sector employees who are entitled to this facility are permanent employees with a maximum monthly gross income of IDR 10 million and non-permanent employees whose average daily income is a maximum of IDR 500,000.

The government hopes that this step can ease the burden on employees in the horeca sector who have been quite affected by the global economic slowdown, while also maintaining people's purchasing power amid efforts to recover the national economy.

The right policy in the midst of a difficult economy

Economic observer from the Institute for Development of Economics and Finance (Indef), Eko Listiyanto, assessed that the PPH 21 DTP incentive policy in the horeca sector is the right policy in the midst of difficult economic conditions. "The government is right to provide this policy," he told SUAR in Jakarta (15/9/2025).

Weakening economic growth has had an impact on the horeca sector, so workers in this sector are holding back their purchasing power. With this tax incentive policy, the horeca worker sector can live better, because the income received is not subject to deductions.

Eko hopes that the government will continue to provide economic policy packages that are beneficial for workers by considering economic growth trends.