Prabowo Unveils Economic Stimulus Package with Tax and Vocational Incentives

Jakarta, CNBC Indonesia — The government has approved the Q2 2026 Economic Stimulus Package, with incentives aimed at accelerating economic growth through various assistance programmes and facilitation measures.

Economic Affairs Coordinating Minister Airlangga Hartarto explained that the package’s main focus is discounted transport tickets for the 2026 Christmas and New Year holidays. Additionally, the government has prepared a national internship programme and special tax incentives for writers.

For transport discounts, the government has allocated Rp190 billion for school holidays affecting 3.07 million people. For the Christmas and New Year period, Rp161.4 billion has been set aside for approximately 2.87 million beneficiaries.

“The transport discounts, including air travel, during the school holidays and Nataru period,” Airlangga said at his office in Jakarta on Thursday (28 May 2026).

Further stimulus in the form of government-subsidised value-added tax (PPN DTP) for flight tickets amounts to Rp472.7 billion targeting 2.3 million passengers during school holidays, while Rp722 billion has been allocated for Nataru targeting 3.7 million passengers.

Alongside mobility-related stimulus, the economic incentives include a national internship programme in July 2026 for 150,000 participants with a budget of Rp4.14 trillion. Additionally, a national vocational programme targeting 220,000 high school graduates and 50,000 laid-off workers with a budget of Rp2.12 trillion.

“These measures have been discussed and are all expected to serve as second-quarter stimulus,” Airlangga stressed.

Lastly, tax incentives for writers take the form of a 1.5% final income tax (PPh). Airlangga did not disclose the budget allocated for this specific incentive.

Thus, the total Q2 2026 Economic Stimulus Package will absorb Rp7.8 trillion in government funds, excluding the final income tax incentives for writers.