The Indonesian Government has issued Government Regulation No. 31 of 2026, the long-awaited implementing regulation of Law No. 8 of 2016 on Persons with Disabilities. Issued nearly a decade after the law, the regulation provides greater clarity on the concessions available to persons with disabilities and the incentives available to companies that support disability inclusion.
For employers, the regulation is particularly relevant because it recognizes companies that employ persons with disabilities as a category eligible for government incentives. While the regulation does not create a new employment quota, it establishes a framework under which companies supporting disability inclusion may receive benefits ranging from recognition and publicity to streamlined licensing processes and assistance relating to accessible workplace facilities.
Concession Now Have a Defined Minimum
Under the regulation, “concessions” generally take the form of discounts, fee reductions, or other cost-saving measures for persons with disabilities when accessing specified goods, services, and activities. The regulation identifies several sectors in which concessions apply – including education, transportation, healthcare, assistive devices, housing and utilities, employment, entrepreneurship, culture and tourism, and sports – and sets out the specific services and costs eligible for these benefits.
One of the regulation’s significant developments is that it introduces a measurable standard for these concessions Article 5 establishes a minimum concession of 20%, with potentially higher concessions for persons who require an attendant, particularly in the transportation, culture and tourism, and sports sectors.
Disability Card Becomes Key to Accessing Benefits
The regulation links entitlement to concessions to possession of a Disability Card (KPD). Importantly, transitional provisions allow people who have not yet obtained a KPD to access concessions using a disability certificate from a health care facility or other accepted documentation until the card is issued.
Incentives for Companies
The regulation also provides incentives for companies that support disability inclusion. Article 25 identifies three categories of companies eligible for incentives: companies that provide concessions, companies that employ persons with disabilities, and tourism businesses providing accessible tours. Under Article 26, the incentives may include recognition, promotion and publicity, facilitation of licensing processes, and assistance in providing accessible facilities.
The regulation also provides for government funding and oversight of the concession program. implementation may be phased based on the financial capacity of the central and regional governments, with funding to come from state and regional budgets and other lawful sources. The Ministry of Social Affairs will coordinate monitoring and evaluation of the program.
For employers, the regulation provides a clearer framework for supporting disability-inclusive employment and accessible workplaces, while potentially providing practical government incentives for doing so.
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