Indonesia to disburse 1.48-billion USD stimulus package in second half of 2026

Measures include reductions in copyright royalty taxes, transport subsidies during holiday periods, and tax exemptions on imports of liquefied petroleum gas (LPG) and plastic raw materials. Discounts on rail, sea and air travel are also expected to encourage household spending and domestic tourism.

Coordinating Minister for Economic Affairs of Indonesia Airlangga Hartarto. Photo: (Photo: VNA)
Coordinating Minister for Economic Affairs of Indonesia Airlangga Hartarto. Photo: (Photo: VNA)

Jakarta (VNA) – The Indonesian Government will disburse a 26.34 trillion IDR (1.48 billion USD) economic stimulus package in the second half of 2026 to support growth, boost consumption and strengthen social welfare.

Coordinating Minister for Economic Affairs Airlangga Hartarto said the package comprises three key components: economic and transport incentives worth around 114 million USD, internship and vocational training programmes valued at 351 million USD, and food assistance exceeding 1 billion USD.

Measures include reductions in copyright royalty taxes, transport subsidies during holiday periods, and tax exemptions on imports of liquefied petroleum gas (LPG) and plastic raw materials. Discounts on rail, sea and air travel are also expected to encourage household spending and domestic tourism.

More than 6 trillion IDR (336 million USD) has been allocated for internship and vocational training programmes targeting over 270,000 workers and recent graduates, with the aim of enhancing workforce skills and mitigating the impact of layoffs.

The largest share of the package, over 18 trillion IDR (more than 1 billion USD), will fund food assistance and price stabilisation measures for essential commodities. Beginning in July, 33.24 million beneficiaries will receive 10 kilograms of rice per month for three months.

The government expects the stimulus package to sustain purchasing power, support domestic consumption and tourism, create jobs, and improve workforce quality, while helping stabilise prices and ensure adequate supplies of essential goods.

Economists viewed the package as a balanced policy response that combines short-term economic stimulus with longer-term objectives of strengthening social protection and human capital development./.

VNA

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