Economist: Rp26 Trillion Stimulus a Timely Move to Protect Public Purchasing Power
An economist from Nusa Cendana University (Undana), Rolland E. Fanggidae, has assessed the government’s Rp26 trillion economic stimulus package, prepared for the second half of 2026, as a strategically sound move. He views the policy as a crucial effort to maintain public purchasing power amidst global economic uncertainty.
“This policy is a good emergency brake from the government. When the global economy is uncertain and people’s purchasing power begins to weaken, the government steps in to inject fresh funds so that the circulation of money does not stall,” he stated in Kupang on Monday (29/6).
While appreciating the budget size, he stressed that the main challenge lies in the effectiveness of distribution, particularly in archipelagic regions like East Nusa Tenggara (NTT). According to him, geographical constraints often hinder the benefits of policies from reaching the public.
“For archipelagic regions like NTT, no matter how great a policy is at the central level, if distribution is slow due to geographical obstacles, the impact on the community will also be delayed,” he emphasised.
Regarding the 100 per cent Government-borne Value Added Tax (PPN DTP) incentive for airline tickets and the exemption of import duties on spare parts, Rolland sees it as an effort to curb ticket price hikes. However, he provided a specific note for the local context of NTT.
“This incentive is a breath of fresh air for airlines, helping to prevent ticket prices from soaring further, especially during holiday seasons. But for NTT, this stimulus is merely a seasonal painkiller; it does not cure the root problem,” explained the Local Expert for the Ministry of Finance in NTT.
He added that high ticket prices in NTT are driven by structural factors such as the limited number of airlines, high avtur costs in island regions, and extreme fluctuations in passenger numbers.
On the other hand, he welcomed the discount on sea transport fares via PT Pelni and PT ASDP Indonesia Ferry vessels. This policy is considered capable of reducing inter-island goods distribution costs and supporting regional trade activities.
Rolland also highlighted the positive impact of the economic stimulus on low-income communities through the provision of 10-kilogramme rice aid and subsidies for essential goods. He believes this intervention will create a multiplier effect for micro, small, and medium enterprises (MSMEs).
“The formula is simple: when the plates of the poor are secure, the grassroots economy moves. Stalls, market traders, and MSMEs will all feel the benefits because public consumption is maintained,” he concluded.
He expressed hope that the central government would pay special attention to the characteristics of archipelagic regions so that the implementation of the Rp26 trillion stimulus can be felt optimally and reach all levels of society in NTT.