Government Regulation Number 31 of 2026 Officially Enacted! Persons with Disabilities Are Entitled to a Minimum 20% Concession, and Companies May Obtain Incentives

Introduction

On 2 July 2026, the President of the Republic of Indonesia enacted Government Regulation Number 31 of 2026 on Concessions for Persons with Disabilities and Incentives for Companies (“GR 31/2026”), which took effect on 2 July 2026. GR 31/2026 provides guidelines on the forms, procedures for granting, and implementation of fee reductions (concessions) for persons with disabilities, while also regulating the mechanism for granting incentives to companies that support the fulfillment of the rights of persons with disabilities.

The issuance of GR 31/2026 is driven by the Government’s commitment to strengthening the respect for, protection of, and fulfillment of the rights of persons with disabilities in order to improve their welfare and promote equal participation in various aspects of life. Through GR 31/2026, the Government mandates the provision of concessions of at least 20% (twenty percent) for certain services to persons with disabilities and establishes an incentive scheme for businesses that contribute to the provision of accessibility, employment opportunities, and the fulfillment of the rights of persons with disabilities in accordance with the prevailing laws and regulations.

Key Provisions

Obligation to Provide Concessions and Eligibility Requirements

Pursuant to Articles 2 and 3, the Central Government and Regional Governments are required to provide concessions to persons with disabilities, as evidenced by possession of a Disability Card (Kartu Penyandang Disabilitas – “KPD”). This obligation also applies to State-Owned Enterprises (BUMN) and Regionally Owned Enterprises (BUMD) in the provision of services falling within their respective authorities.

In addition, the Government encourages the participation of the private sector in providing concessions as a form of support for the fulfillment of the rights of persons with disabilities and the enhancement of accessibility.

Under GR 31/2026, a Person with a Disability is defined as any individual who experiences long-term physical, intellectual, mental, and/or sensory limitations that, in interacting with the environment, encounters barriers and difficulties in participating fully and effectively with other citizens on an equal basis.

Amount and Scope of Concessions

Pursuant to Articles 4 and 5, GR 31/2026 stipulates that persons with disabilities are entitled to concessions of at least 20% (twenty percent) for the services regulated under the Regulation.

Specifically, for persons with disabilities who require an assistant in carrying out their daily activities, concessions in the transportation, culture and tourism, and sports sectors must be provided at a higher value.

Under GR 31/2026, an assistant is defined as a person who possesses knowledge regarding the type, degree, and barriers experienced by a person with a disability and who is capable of providing the assistance required in carrying out daily activities.

The scope of the concessions covers various public service sectors, including:

·      Education, in the form of tuition fee reductions for early childhood education, primary education, secondary education, higher education, and non-formal education such as courses and training programs.

·      Transportation, including reduced fares for domestic land, sea, air, and railway transportation, parking fees, toll road tariffs, purchases of non-subsidized fuel, and driver’s license issuance fees.

·      Housing and Utilities, including reduced tariffs for water supply and sanitation services, electricity, internet, fixed-line telephone services, gas, as well as reductions in housing rental and home ownership costs.

·      Other Public Services, including reduced healthcare service fees outside the scope of the National Health Insurance (JKN) Program, the provision of assistive devices and supporting software, job training, micro business licensing, and admission fees for tourism destinations and sports facilities.

These provisions demonstrate the Government’s commitment to expanding accessibility to public services while reducing the economic burden on persons with disabilities through cross-sector concessions aimed at ensuring the comprehensive fulfillment of their rights.

Incentives for Companies

Pursuant to Articles 25 and 26, GR 31/2026 regulates the mechanism for the granting of incentives by the Central Government and Regional Governments to businesses that contribute to the fulfillment of the rights of persons with disabilities.

Such incentives may be granted to private companies that provide concessions to persons with disabilities, companies that employ persons with disabilities, and businesses in the tourism sector that provide accessible tourism travel services for persons with disabilities.

The forms of incentives that may be granted include:

• official awards or recognition;
• support for business promotion and publicity;
• facilitation in the business licensing process; and
• facilitation in the provision of environments and workplaces that are disability-friendly and accessible to persons with disabilities.
• Funding

Pursuant to Article 28 paragraph (1), funding may originate from the State Budget (Anggaran Pendapatan dan Belanja Negara – "APBN"), Regional Budgets (Anggaran Pendapatan dan Belanja Daerah – "APBD"), and/or other lawful and non-binding sources in accordance with the prevailing laws and regulations.

Furthermore, Article 28 paragraph (2) stipulates that the utilization of funds derived from the APBN must be carried out in accordance with the prevailing laws and regulations governing state finance.

This provision is intended to ensure that budget management and utilization are conducted in an orderly, accountable, transparent, and lawful manner in accordance with the applicable state financial management framework, thereby ensuring that the implementation of concessions and incentives is supported by funding certainty while upholding the principles of good governance.

Obligation to Issue Implementing Regulations

Pursuant to Article 31, all implementing regulations required to implement the provisions of GR 31/2026 must be enacted no later than 2 (two) years from the date of promulgation of this Regulation, namely 2 July 2028.

The establishment of this deadline is intended to provide legal certainty, ensure the availability of the regulations required to implement the provisions of GR 31/2026, and prevent regulatory gaps that could impede the implementation of policies concerning the provision of concessions and incentives for persons with disabilities.

Transitional Provisions

Pursuant to Article 30, persons with disabilities who do not yet possess a Disability Card (KPD) remain entitled to receive all concessions provided under GR 31/2026.

During the transitional period, such entitlement may be evidenced by a disability certificate issued by a healthcare facility or by another document that had been used and recognized prior to the entry into force of GR 31/2026.

This transitional provision is intended to ensure that access to concession entitlements is not hindered by the administrative process of obtaining a KPD until persons with disabilities officially receive their KPD.

Closing

GR 31/2026 establishes a legal framework to ensure the fulfillment of the rights of persons with disabilities through the provision of concessions of at least 20% (twenty percent) across various public service sectors while simultaneously encouraging private sector participation through an incentive scheme.

This policy not only strengthens accessibility and the protection of the rights of persons with disabilities but also establishes a mechanism that encourages the participation of State-Owned Enterprises (BUMN), Regionally Owned Enterprises (BUMD), and the private sector in delivering inclusive services.

With the enactment of GR 31/2026, government institutions, business entities, and businesses should adjust their policies, governance, and service delivery mechanisms to align with the provisions governing concessions, the use of the Disability Card (KPD), and the opportunity to obtain incentives for contributing to the provision of disability-friendly services and workplaces.

At the same time, persons with disabilities will gain broader access to various services through fee reductions, including during the transitional period for those who have not yet obtained a KPD.

In addition, the Government is required to issue the implementing regulations no later than 2 July 2028. This requirement is intended to ensure that the concession and incentive mechanisms can be implemented effectively, measurably, and in a manner that provides tangible benefits toward the realization of a more inclusive and equitable society.