Government Formulates Large Stimulus Package for Late 2026 and 2027
The government is preparing several economic stimuli to strengthen public purchasing power and ensure the sustainability of economic programmes as it faces the fourth quarter of 2026 and 2027.
“President Prabowo Subianto led discussions on economic stimulus programmes and various government initiatives at the Merdeka Palace, Jakarta, on Wednesday, 30 September 2026,” according to the Cabinet Secretariat on Thursday (1/10/2026).
For the fourth quarter of 2026, the government is preparing an account opening programme for citizens over the age of 17, specifically targeting those in deciles 1 to 4. The number of recipients is currently undergoing verification with relevant ministries to ensure accurate targeting.
Furthermore, the government is preparing a rice food assistance programme of 10kg per month for the period of October to December 2026. This rice assistance will be provided to 33,244,408 Beneficiary Families (KPM) within deciles 1 to 4, requiring a budget of approximately Rp17.5 trillion.
In addition to food assistance, the government will reintroduce Wage Subsidy Assistance (BSU) in the amount of Rp300,000 per month for a three-month period. This programme is aimed at approximately 13.3 million workers, with an estimated budget requirement of nearly Rp12 trillion.
The government has also ensured that several programmes implemented this year will continue into 2027. The internship programme through the Ministry of Manpower will continue, targeting 150,000 participants, while vocational programmes will be extended to 300,000 people.
The government will also continue the policy of reducing Income Tax Article 21 (PPh 21) for workers with incomes below Rp10 million, targeting approximately 7.5 million employees.
In the housing sector, the VAT Borne by the Government (PPN DTP) facility is planned to continue in 2027 for house purchases priced up to Rp2 billion. For house purchases up to Rp5 billion, the PPN DTP facility will be provided based on an incentive value of Rp2 billion.
Regarding worker protection, the government discussed the continuation of contribution relaxations for Work Accident Insurance (JKK) and Death Benefits (JKM) for non-wage earners into 2027, as well as adjustments to Job Loss Insurance (JKP) benefits for a period of six months.
The government is also preparing additional programmes for subsidised Home Ownership Loans (KPR) for individuals with a fixed income of approximately Rp17 million at a 6 per cent interest rate. The house value eligible for this subsidised KPR is up to Rp500 million.
The government also discussed regulatory adjustments regarding VAT facilities for products containing 99.9% pure precious metals.
“Various programmes are still in the process of maturation and regulatory preparation. Through these steps, the government continues to maintain purchasing power while strengthening worker protection, the housing sector, and economic growth momentum towards 2027,” the Cabinet Secretariat wrote on Instagram.