The Government Prepares Tax Incentives for Fresh Graduates During Internships

The Ministry of Finance (“ Kemenkeu ”) is finalizing the Draft Regulation of the Minister of Finance (“ RPermenkeu ”) on the Income Tax (“ PPh ”) Article 21 on the income of university graduate internship participants borned by the government for the 2026 fiscal year. This policy is part of the 2025-2026 economic stimulus package, which includes providing a stipend equivalent to the Provincial Minimum Wage (“ UMP ”) to 20,000 university graduate internship participants for a period of six months.

“'It is being harmonized to support the government’s program in enhancing human resource competencies, particularly for university graduates,” stated an internal source from the Directorate General of Treasury at the Ministry of Finance to Hukumonline.

The government is reported to have allocated a budget of Rp. 198 billion to facilitate internship opportunities for fresh graduates with a maximum graduation period of one year, including those holding bachelor’s degrees (S1), associate degrees (D3), or other academic qualifications, across various industrial sectors. This program is expected to promote the link and match between the competencies of internship participants and industry needs.