Government Injects Rp31 Trillion to Boost Indonesian Economy to 5.5% in Q4-2026
The administration of President Prabowo Subianto is implementing a series of policies to boost purchasing power in the fourth quarter of 2026, with a total investment reaching Rp31 trillion.
Coordinating Minister for Economic Affairs Airlangga Hartarto explained that increasing purchasing power will have a positive impact on economic growth. The target for Q4-2026 is to exceed 5.5%.
“We must encourage high economic growth in Q4. Our target is above 5.4 - 5.5%,” he told reporters at his office in Jakarta on Friday (2/10/2026).
The stimulus policies include internship and vocational programmes, income tax incentives, food assistance, wage subsidies, and other measures.
Airlangga added that stimulus is also being prepared for the beginning of next year. “At the start of the year, we also need certainty regarding incentives so that the economy in Q1 can remain high.”
Details of the Q4-2026 stimulus include:
The government is preparing a bank account opening programme for citizens aged over 17, specifically targeting populations in deciles 1 to 4. The number of recipients is currently being verified alongside 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) in deciles 1 to 4, with a required budget of approximately Rp17.5 trillion.
In addition to food assistance, the government will once again provide 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 the vocational programme will continue for 300,000 people.
The government will also continue the policy of reducing Article 21 Income Tax (PPh 21) for workers with incomes below Rp10 million, targeting approximately 7.5 million workers.
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 of Rp2 billion.
Regarding worker protection, the government is discussing the continuation of the relaxation of Work Accident Insurance (JKK) and Death Insurance (JKM) contributions 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 an additional programme for Subsidised People’s Housing 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 is also discussing regulatory adjustments regarding VAT facilities for products containing 99.9% pure precious metals.