Purbaya Prepares New Incentives, Awaits Presidential Approval

Finance Minister Purbaya Yudhi Sadewa has revealed that the government is preparing a series of new incentives, including subsidies for the purchase of electric cars and motorcycles, as well as direct cash transfers. “Throughout this year we are considering incentives for electric cars and electric motorcycles,” Purbaya said during the CNBC Indonesia Economic Update 2026 on Tuesday (23/6/2026). He added that other incentives being prepared include direct cash assistance for those in need and additional support for people who have never received government aid, such as food assistance. “So stimulus for the economy will continue. We will see what is needed later. For now, we are all waiting for guidance from the President,” he stated. Purbaya emphasised that these additional incentives for the public economy still require a decision from President Prabowo Subianto. “But we will also wait for direction from the President, although he has already given instructions to consider it. We have done the calculations, and we are waiting for the decision,” he said. Previously, the government had agreed to disburse a Semester II-2026 Economic Stimulus Package to accelerate economic growth. Coordinating Minister for Economic Affairs Airlangga Hartarto explained that the package focuses on transport ticket discounts for school holidays and the 2026 Christmas and New Year period, a national internship programme, and tax incentives for writers. Specifically, the transport discounts, including for air travel, amount to Rp 190 billion for the school holidays, benefiting 3.07 million people, and Rp 161.4 billion for the Christmas and New Year period, benefiting 2.87 million people. Additional stimulus in the form of government-borne value-added tax (PPN DTP) is also provided for airline tickets, with Rp 472.7 billion allocated for the school holiday period targeting 2.3 million passengers, and Rp 722 billion for the Nataru period targeting 3.7 million passengers. Further economic incentives include a national internship programme in July 2026 for 150,000 participants with a budget of Rp 4.14 trillion, and a national vocational programme for 220,000 vocational school graduates and 50,000 layoff victims with a budget of Rp 2.12 trillion. “So that is what was discussed, and all of this is expected to provide a stimulus in the second quarter,” Airlangga stated. The final component is a tax incentive for writers in the form of a final income tax rate of 1.5 per cent, though Airlangga did not disclose the budget allocation for this measure. The total Semester II-2026 Economic Stimulus Package will absorb Rp 7.8 trillion in government funds, excluding the income tax incentive for writers.