Jakarta. Indonesia will introduce two new economic incentives in 2027, offering 6% mortgage rates to salaried workers earning around Rp 17 million ($947) a month and revising value-added tax (VAT) facilities for the precious metals jewelry industry, Chief of Economic Minister Airlangga Hartarto said on Wednesday.

The new measures will complement seven existing economic programs that the government plans to continue next year, Airlangga said after a limited meeting with President Prabowo Subianto at the State Palace in Jakarta.

The first new initiative will extend a subsidized mortgage scheme, previously intended for micro, small and medium enterprises (MSMEs) with irregular incomes, to workers with fixed salaries of around Rp 17 million a month. Eligible buyers will be able to purchase homes priced at up to Rp 500 million.

“The program was previously designed for MSMEs, whose incomes are irregular but who run businesses. Now, it will also cover those with fixed incomes,” Airlangga said.

The second measure will revise VAT facilities for the jewelry industry, allowing businesses to use precious metals with a purity level of 99.9%, compared with the current regulatory requirement of 99.99%. The change will be stipulated in a government regulation, he said.

Airlangga said the government would also continue several economic incentives introduced in 2026, with adjustments to their coverage and benefits.

Employment and tax incentives
The government will continue its apprenticeship program, managed by the Manpower Ministry, targeting 150,000 participants in 2027. Vocational training programs will also continue, with a target of 300,000 participants.

The government will extend income tax (PPh 21) relief for workers earning less than Rp 10 million a month, covering 7.5 million workers. Unlike the current scheme, which targets workers in labor-intensive industries and tourism, the 2027 incentive will apply across all sectors.

“Next year, the incentive will cover all sectors, as long as workers earn less than Rp 10 million a month,” Airlangga said.

The government will also adjust the non-taxable income threshold (PTKP) in line with inflation.

Housing and social security support
The government will extend its VAT-borne-by-government (DTP) incentive for home purchases in 2027. Under the scheme, the government will cover VAT on eligible homes priced at up to Rp 2 billion. For properties priced above Rp 5 billion, VAT relief will apply to Rp 2 billion of the purchase price, Airlangga said.

The government will also continue a 50% discount on contributions to work accident insurance (JKK) and death insurance (JKM) for non-wage workers enrolled in the social security program.

Meanwhile, the government is preparing adjustments to benefits under the Job Loss Insurance (JKP) program.

Under the proposed changes, workers previously earning less than Rp 2.3 million a month would receive Rp 2.3 million in monthly assistance for six months. Those earning between Rp 2.3 million and Rp 3.6 million would also receive Rp 2.3 million, while workers earning around Rp 3.8 million would receive benefits equivalent to 60% of their wages for six months.

“We are still finalizing this with the Finance Ministry,” Airlangga said.

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