Government Opens Door to Additional Stimulus to Safeguard Purchasing Power and Economic Growth
The Chair of the Financial System Stability Committee (KSSK), who is also the Finance Minister, Purbaya Yudhi Sadewa, has opened the possibility of providing additional stimulus in the second quarter of 2026 to maintain economic growth and public purchasing power.
This step is being prepared after the Indonesian economy grew by 5.61 per cent in the first quarter of 2026. The government wants to keep this growth momentum amid global economic uncertainties.
“We are looking at all the macroeconomic variables available. It seems the government will also provide additional stimulus for the economy in the second quarter of 2026,” said Purbaya during a media briefing following the KSSK meeting on Thursday (7/5/2026).
According to him, household consumption remains the main pillar of national economic growth. Therefore, the government will ensure that state expenditure continues to run so that economic activity does not slow down.
At the beginning of the year, government spending was seen to drive the economy through the disbursement of holiday allowances (THR) for civil servants (ASN), the Indonesian National Armed Forces (TNI), and the National Police (Polri). In addition, the government is accelerating the distribution of social assistance and the implementation of the Free Nutritious Meals Programme (MBG).
“The same will be done in the second quarter through to the end of the year to ensure that domestic demand remains stable,” he said.
The government targets economic growth of 5.4 per cent in 2026. However, the government hopes the realisation can approach 6 per cent.
Previously, the Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated that the government is accelerating the distribution of social assistance to maintain public purchasing power.
The Family Hope Programme (PKH) is targeted to reach around 10 million beneficiary families in the second quarter of 2026. Meanwhile, the Non-Cash Food Assistance (BPNT) is provided to 18.8 million families.