Indonesia Urges Businesses to Utilize Super Tax Deduction to Strengthen Workforce Skills

JAKARTA, STUPA NEWS – Indonesia's Ministry of Manpower has called on businesses to take advantage of the Super Tax Deduction (STD) incentive to strengthen workforce competencies and support the development of a more competitive labor force.

The tax incentive allows companies to claim a 200 percent deduction from their gross taxable income for expenses related to vocational education and training, including employee training and apprenticeship programs.

The appeal was delivered by Anwar Sanusi, Head of the Ministry's Agency for Manpower Planning and Development (Barenbang Ketenagakerjaan), during a webinar titled Optimizing the Utilization of Super Tax Deduction (STD) in Preparing a High-Quality and Competitive Workforce held in Jakarta on Thursday (July 30, 2026).

Speaking at the event, Anwar emphasized that improving workforce capacity and productivity is a fundamental pillar for enhancing Indonesia's economic competitiveness. To achieve this goal, the government continues to strengthen a range of human resource development initiatives, including the National Vocational Training Program and the National Apprenticeship Program.

According to Anwar, the Super Tax Deduction policy represents a strategic instrument to encourage greater private-sector participation in workforce development. Through the scheme, investment in employee training is no longer expected to rely solely on government funding but is increasingly supported by corporate initiatives.

"Workforce competency development should no longer be viewed merely as an operational expense. It is a long-term investment that generates tangible benefits for businesses while contributing to national economic growth," Anwar said.

Despite its significant benefits, the Ministry's Center for Manpower Policy Development found that utilization of the incentive among businesses and industries remains relatively low, with only a limited number of companies taking advantage of the program.

To address this challenge, the Agency for Manpower Planning and Development is formulating policy improvements aimed at expanding the use of the incentive and ensuring that the regulatory framework becomes more responsive to the evolving needs of the business community.

Anwar expressed hope that the webinar would generate constructive recommendations to improve the effectiveness of the Super Tax Deduction policy, ultimately encouraging more companies to invest in workforce competency development.

He stressed that building a highly skilled and competitive workforce is essential to sustaining Indonesia's economic growth in an increasingly competitive global market.

"Achieving a competitive workforce requires strong collaboration among workers, business organizations, industry, academia, and the government to ensure that Indonesia's production practices become more sustainable, efficient, and globally competitive," he concluded. (Jamil)