Government Unveils 8 Economic Stimulus Measures for Second Half of 2026, Including Rice Aid
The Indonesian government has announced a series of eight economic stimulus measures to be rolled out in the second half of 2026, designed to cushion the impact of ongoing global economic uncertainties. Despite signs of easing geopolitical tensions in the Middle East, the government remains proactive in mitigating external risks to safeguard national economic stability and growth momentum.
Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the package follows directives from President Prabowo Subianto. The stimulus is structured around three main pillars: consumption and business incentives, employment and middle-class support, and food assistance as a social safety net.
Under the first pillar, four policies target the creative industry and transport sector. A special final income tax rate of 1.5% on royalties is introduced for national authors. To boost mobility, the government is offering a 30% discount on train tickets and Pelni ship fares, free port services at ASDP crossings, and a 100% government-borne VAT subsidy for domestic economy-class flights during the school holiday period from late June to early July. Similar transport incentives will be repeated for the Christmas and New Year holiday season, with total transport subsidies amounting to approximately Rp2.04 trillion. For industry, zero import duties are imposed on LPG for petrochemicals and on plastic raw materials to reduce production costs and prevent consumer price hikes.
The second pillar focuses on human resources, allocating Rp4.14 trillion for the MagangHub National Internship Programme Phase II, targeting 150,000 fresh graduates starting in July. A further Rp2.12 trillion is earmarked for vocational training, prioritising 220,000 vocational school graduates to enhance their job readiness and providing reskilling opportunities for 50,000 workers affected by layoffs.
The third pillar reinforces the social safety net with two key measures. Starting in July, the government will distribute 10 kg of rice per month for three months to 33.24 million beneficiary families, with a budget of Rp17.54 trillion. Additionally, a price stabilisation and supply assistance programme for soybeans will subsidise up to Rp2,000 per kg for 250,000 tonnes of soybeans for tofu and tempeh producers in regions where prices exceed the government’s reference price.
In total, the stimulus package is valued at Rp26.34 trillion, comprising Rp2.04 trillion for transport incentives, Rp6.26 trillion for internship and vocational programmes, and Rp18.04 trillion for food assistance.