RRI.CO.ID, Nganjuk - The government has urged businesses to take advantage of economic stimulus measures in the form of tax incentives, specifically Income Tax Article 21 Borne by the Government (PPh 21 DTP).

“This incentive has been in place since 2025 and has been extended until the end of 2026. The provisions are stipulated in Minister of Finance Regulation No. 105/2026,” said Inge Diana Rismawanti, Director of Counseling, Services, and Public Relations at the Directorate General of Taxes, during a media visit in Nganjuk on Thursday, April 16, 2026.

Inge explained that the government allocated IDR 400 billion for the PPh 21 DTP incentive in 2025, but the budget was not fully utilized. “Due to popular demand, we will provide this incentive again in 2026. The budget ceiling has been increased to nearly IDR 500 billion,” she said.

The incentive primarily targets businesses in five labor‑intensive sectors vulnerable to economic turmoil: footwear, textiles and apparel, furniture, leather and leather goods, and tourism.

PPh 21 DTP applies to workers earning less than IDR 10 million per month, allowing them to receive their full income without tax deductions. “This doesn’t mean taxes aren’t paid. The government pays the taxes that would normally be deducted from employees’ income. It demonstrates the government’s commitment to supporting businesses and workers amid ongoing economic pressures,” Inge said.

She added that the government’s goal in extending the stimulus is to reduce poverty, unemployment, and social inequality, while encouraging sustainable economic growth.

One company benefiting from the incentive is PT Mitra Saruta Indonesia, a textile recycling firm in Nganjuk. The company transforms textile waste into recycled yarn and knitted gloves, operating on circular economy principles.

Of its 1,700 employees, around 300 qualify for the PPh 21 DTP incentive. “I am very grateful for the PPh 21 DTP tax incentive. It really helps business owners,” said director Hoo Yanto Andrian.

PT Mitra Saruta Indonesia processes about 3,000 tons of recycled textile waste each month, with nearly 90 percent sourced locally. The company works with more than 100 small‑ and medium‑sized enterprises, and its finished products are exported to Japan, the United States, and around 39 other markets. (Misni Parjiati/Lasti Martina)