Politics · Indonesia · 1 hr ago
Indonesia pledges continued support for small businesses under Prabowo
Indonesia's government says it will continue backing small businesses as President Prabowo reaches two years in office.
The support is part of his pledge to help reduce poverty and includes social protection and efforts to expand small businesses and creative industries.
A 2026 regulation sets a 0.5% final income tax for eligible businesses with annual turnover below 4.8 billion rupiah, while those below 500 million rupiah can pay 0%.
The government is also promoting training, technology and access to financing to help businesses grow and reach global markets.
It says it will work to curb illegal imports and ensure digital platforms do not impose unfair costs on local businesses.
Rules on marketplace fees are still being developed; the government says it will first seek cooperation, but may take firmer action if businesses remain unprotected.
Indonesia says it will continue programs to support micro, small and medium-sized enterprises (MSMEs) under President Prabowo.
The government says its support includes social protection and efforts to reduce poverty.
It plans to add dedicated funding for MSMEs and the creative economy, aiming to expand entrepreneurship and employment.
A 2026 regulation sets a 0.5% final income tax rate for eligible MSMEs and a 0% rate for businesses with annual turnover below Rp 500 million.
The government is also working to protect local MSMEs from illegal imports and unfair costs imposed by digital platforms.
- Who
- The Indonesian government under President Prabowo. Officials named include Coordinating Minister Muhaimin Iskandar and Communications and Digital Minister Meutya Hafid.
- What
- The government says it will continue support for MSMEs, including funding, tax measures, training and efforts to protect local businesses.
- When
- The commitment dates to Prabowo’s inauguration on October 20, 2024. Officials reiterated it in October 2026.
- Where
- Indonesia.
- Why
- The government says support can help reduce poverty, grow entrepreneurship and create jobs.
This story does not have two clearly opposing sides.
Prabowo was inaugurated as president.
Muhaimin Iskandar said the government’s programs would continue, with a focus on facilitating MSMEs.
The government issued Regulation No. 20 of 2026 on adjustments to final income tax policy for MSMEs.
CNBC Indonesia published its report on the government’s continued support for MSMEs.
- MSME population
- 57 million
- Turnover threshold for 0.5% final income tax
- Below Rp 4.8 billion per year
- Turnover threshold for 0% final income tax
- Below Rp 500 million per year
- Regulation
- Government Regulation No. 20 of 2026
- President’s inauguration
- October 20, 2024
What people are saying
All the programs that have been planned and carried out by the coordinating ministry together with the ministries will continue. Especially for MSMEs, we will encourage and continue to ask and instruct ministries and agencies to keep facilitating our MSMEs so they can grow and receive support.
We fully support the efforts of the Ministry of MSMEs to protect MSME businesses. Digital platforms must operate fairly and must not unilaterally burden small and medium-sized businesses and the public.
Our MSMEs have little involvement in exports and imports. Their markets are domestic, and most of their raw materials also come from within the country.