The government has officially launched the 2025 economic stimulus package. One of the contents is a government-borne Income Tax Article 21 facility for the tourism sector - specifically hotels, restaurants and cafes (horeka).

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

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

In line with Hariyadi, PHRI Bali Vice Chairman I Gusti Agung Rai Suryawijaya said that workers in the hospitality sector were very happy to hear the news of the Income Tax 21 incentive borne by the government.

This policy can boost workers' purchasing power because their income increases. Usually on the pay slip there is a deduction for Income Tax Article 21, now there is no longer.

"The provision of tax incentives is very fitting with the weak tourism condition, but employees can still enjoy their full salary," 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. "The expansion of tax incentives that previously only applied to labor-intensive industries will be encouraged to other sectors as well, especially for horeka," said Airlangga in a press conference in Jakarta, (12/9/2025).

So far, in accordance with Minister of Finance Regulation (PMK) Number 10 of 2025, the new Income Tax 21 DTP incentive is given to workers in labor-intensive industries. The policy is valid for the January to December 2025 tax period.

The provisions regarding incentive recipients still refer to the applicable regulations. Employees of the horeka sector who are entitled to this facility are permanent employees with a maximum gross monthly 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 of the horeka sector who have been hit hard by the global economic slowdown, as well as maintain people's purchasing power amid efforts to recover the national economy.

The right policy in a difficult economy

Economic observer of the Institute for Development of Economics and Finance (Indef) Eko Listiyanto assessed that the PPH 21 DTP incentive policy in the horeka 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).

Weak economic growth has an impact on the horeka sector, so workers in the sector hold back their purchasing power. With this tax incentive policy, the horeka worker sector can live better, because the income received is not deducted.

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