According to reporting from Tempo, the Indonesian government has rolled out a new 2025 economic package designed to boost growth and create jobs. Coordinating Minister for Economic Affairs Airlangga Hartarto said the package, known as the 8+4+5 Program, consists of eight development acceleration programs for 2025, four continuation programs for 2026, and five flagship initiatives for job creation.
The first initiative is a six-month internship program targeting fresh graduates from diploma (D3) to bachelor’s (S1) levels.
“This will be linked with the industrial sector, with 20,000 participants receiving monthly stipends equivalent to the provincial minimum wage,” Airlangga said at the Presidential Palace on Monday (15/9/25). The program is backed by a IDR 198 billion budget.
Tempo says the second program expands government-borne Income Tax Article 21 (PPh 21 DTP) beyond labor-intensive sectors to tourism, hotels, restaurants, and cafés. About 552,000 workers are expected to benefit from a 100 percent tax exemption for the final three months of 2025.
“The budget allocation is IDR 120 billion,” Airlangga said.
The third initiative provides 10 kilograms of rice per month for October and November, potentially extended to December. “This requires IDR 7 trillion in funding,” he said.
The fourth program subsidizes 50 percent of accident and death insurance (JKK and JKM) contributions for 731,361 non-wage workers, including drivers, couriers, and logistics workers, says Tempo.
“We hope this can support online transportation drivers. The budget, IDR 36 billion, will be covered by BPJS,” Airlangga explained. Compensation includes up to 48 times wages for death benefits, 56 times for disability, and scholarships of IDR 174 million for two children.
The fifth program enhances BPJS Ketenagakerjaan’s housing benefits by lowering loan interest rates from BI rate plus 5 percent to BI rate plus 3 percent for workers, and from BI rate plus 6 percent to 4 percent for developers.
“This is also supported by relaxation of credit information rules under OJK,” Airlangga said. BPJS will provide IDR 150 billion, benefiting up to 1,000 households this year and scaling up to 3 million next year.
The sixth program allocates cash-for-work projects to 609,465 people between September and December 2025. Funding comes from IDR 3.5 trillion at the Ministry of Public Works and IDR 1.8 trillion at the Ministry of Transportation.
The seventh initiative accelerates deregulation under Government Regulation No. 28/2025 on risk-based licensing. It expands integration of regional planning (RDTR) with the Online Single Submission (OSS) system from 50 to over 170 districts.
“The Geospatial Information Agency will prepare the data. If processing takes longer than 20 days, approvals will automatically take effect,” Airlangga explained. The estimated budget is IDR 1 trillion.
The eighth program launches pilot projects in major cities, including Jakarta’s Gig Economy hub. Similar projects will be introduced in West Java, Central Java, East Java, Banten, Bali, Manado, Makassar, and Batam. Funding will come from local governments and the Ministry of Tourism and Creative Economy, reports Tempo.
Source: Tempo
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