Details of the Rp7.8 trillion second stimulus package for 2026

Government to launch Rp7.8 trillion stimulus package to boost second-half 2026 economic growth. The total stimulus package, comprising transport discounts and tax incentives, was announced by Coordinating Minister for Economic Affairs Airlangga Hartarto following a ministerial coordination meeting on Tuesday, 26 May 2026. He stated the package would run from Q2 2026 through to the second semester, stating, “This is partially for the second semester.”

Airlangga detailed the allocated funds, including a 1.5% final income tax (PPh) incentive for authors on royalty payments. The tax reduction will automatically apply to all authors provided the books have a clear International Standard Book Number (ISBN).

Additionally, the government will introduce transport discounts and airfare subsidies during school holidays and the 2026 Christmas and 2027 New Year period (Nataru). For school holidays, a budget of Rp190.5 billion is allocated, targeting 3,074,899 beneficiaries.

Specifically, railway tickets will receive a 30% discount on fares from 20 June to 5 July 2026. PT Pelni’s sea transport users will get a 30% discount on basic fares from 20 June to 15 August 2026, while ASDP ferry services will have port service fees waived during the same period as the railway discounts.

For the Nataru period, a Rp161.4 billion budget targets 2,874,581 beneficiaries, including 30% discounts on train tickets from 22 December 2026 to 4 January 2027. PT Pelni’s sea transport will see a 30% discount on basic fares from 17 December 2026 to 10 January 2027, with ASDP ferry services also having port fees waived during the same period.

Air travel stimulus includes 100% government-covered VAT on domestic economy-class flight tickets. The subsidy, estimated at Rp472.7 billion, targets 2.3 million passengers from 24 June to 5 July 2026. During Nataru (22 December 2026 to 10 January 2027), a Rp722 billion budget is allocated for 3.7 million passengers, with an additional 50% discount on PJP2U and PJP4U fees.

Furthermore, the government will continue the fourth phase of the National Internship Programme in July 2026 with a Rp4.14 trillion budget for 150,000 participants. A national vocational programme is also planned for 220,000 vocational school (SMK) graduates and 50,000 workers affected by layoffs, with an estimated budget of Rp2.12 trillion.