President launches Rp16.2 T “8-4-5” economic package to boost jobs and welfare

  • Published on 16/09/2025 GMT+7

  • Reading time 2 minutes

  • Author: Julian Isaac

  • Editor: Imanuddin Razak

President Prabowo Subianto has unveiled a comprehensive economic stimulus package worth Rp16.2 trillion(US$989 million) to strengthen employment opportunities and support key sectors. 

The initiative, called the “8+4+5” program, was announced at the Presidential Palace in Jakarta on Monday, September 15, 2025 and includes measures scheduled to run through 2026.

Coordinating Minister for the Economiy, Airlangga Hartarto, cited that the plan consists of eight acceleration programs for 2025, four extended programs into 2026, and five flagship initiatives aimed at expanding job creation.

The first program offers internships for recent university graduates − those who finished within the past year − providing a stipend equivalent to the regional minimum wage, or about Rp3.3 million per month, for six months. The second program expands income tax (PPh 21) incentives for workers in the tourism sector.

Additional measures include two months of food assistance in October and November, and a 50 percent discount on workplace accident insurance (JKK) and workplace death insurance (JKM) premiums for 731,361 drivers of online motorcycle taxis, base-station taxis, couriers, and logistics workers, valid for six months.

Housing support comes through relaxed mortgage and apartment loan interest, capped at the Indonesian Central Bank (BI) rate plus three percent, benefiting 1,050 recipients.

A cash-for-work program will also provide employment through the Public Works and Transportation ministries from September to December 2025, targeting 609,495 participants.

Other 2025 initiatives involve accelerating Government Regulation No. 28 to integrate ministry and agency systems into the Online Single Submission (OSS) platform, as well as upgrading urban settlements and creating dedicated spaces for gig-economy activities.

Four programs will continue into 2026: the extension and adjustment of the 0.5 percent final income tax rate for small and medium enterprises (SMEs), continued PPh 21 incentives for tourism and labor-intensive sectors, and the ongoing JKK and JKM premium discounts.

Meanwhile, five flagship projects designed to absorb labor include the Red-and-White village cooperative scheme, the Red-and-White fishing village program, revitalization of shrimp and fish ponds along Java’s northern coast, modernization of fishing vessels, and community-based plantations.

According to Airlangga, these combined efforts are intended to spur economic growth, create jobs, and enhance welfare for workers and local communities across Indonesia.

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