Government Disburses Second Phase of Economic Stimulus Worth Rp26.34 Trillion

Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto has announced that the government is disbursing a second-stage economic stimulus package worth Rp26.34 trillion, consisting of tax incentives, internship and vocational programmes, and food assistance.

“The second-stage stimulus amounts to Rp26.34 trillion, covering tax incentives, transport, exemption of LPG entry fees, internships, vocational training, and food assistance,” Airlangga said during a press conference on the Financial Note and the 2027 Draft State Budget (RAPBN) held at the Directorate General of Taxes headquarters in Jakarta on Friday.

According to Airlangga’s presentation, the government is allocating Rp2.04 trillion for second-stage stimulus and incentives. These include a special final income tax rate of 1.5 percent on royalties for writers; transport discounts during school holidays and the Christmas and New Year period for trains, Pelni, and ASDP.

Furthermore, stimulus and incentives are also provided in the form of 100 percent Government-Borne Value Added Tax (PPN DTP) on domestic economy-class flight tickets for 6 million passengers; zero import duty on LPG for the petrochemical industry and plastic raw materials; and zero import duty on aircraft spare parts.

The government is also disbursing Rp6.26 trillion for internships and vocational training, comprising an internship programme with a budget of Rp4.14 trillion for 150,000 participants starting July 2026, and vocational training with a budget of Rp2.12 trillion to improve workforce skills.

The priority targets of the internship and vocational stimulus are 220,000 vocational high school graduates and 50,000 workers affected by layoffs.

Additionally, the government is disbursing food assistance stimulus worth Rp18.04 trillion, consisting of 10 kg rice aid worth Rp17.54 trillion for 33.24 million recipients over three months starting July 2026, and soybean SPHP with a budget of Rp500 billion for tofu and tempeh artisans for a quota of 250,000 tonnes.

“The government continues to push to maintain purchasing power through the stimulus measures issued,” Airlangga said.

President Prabowo Subianto stated that the deficit in the 2027 RAPBN is targeted at 2.40 percent of Gross Domestic Product (GDP), down from 2.68 percent of GDP in the 2026 State Budget.

Budget financing in 2027 is planned at Rp671.2 trillion, down from the financing plan of Rp689.1 trillion in the 2026 State Budget.

Furthermore, state expenditure in 2027 is planned at Rp4,097.2 trillion, up from Rp3,842.7 trillion in the 2026 State Budget.

On the other hand, state revenue is estimated to reach Rp3,426 trillion, up from Rp3,153.6 trillion in the 2026 State Budget.