Details of Indonesia's New Rp7.8 Trillion Stimulus Package

Indonesia is set to implement a significant stimulus package, valued at Rp7.8 trillion (approximately $480 million USD), aimed at invigorating economic growth during the latter half of 2026. The initiative, announced by Coordinating Minister for Economic Affairs Airlangga Hartarto, encompasses a range of measures designed to stimulate consumer spending and support key sectors.

The package features substantial transportation discounts to coincide with major holiday periods, including the upcoming school breaks and the Christmas and New Year 2027 festivities. For the school holidays, Rp190.5 billion has been allocated to benefit nearly 3.1 million travelers, offering 30% fare reductions on rail and sea travel, and exempting ferry services from port fees. Similar measures, with a budget of Rp161.4 billion, will be in place for the year-end holidays.

In addition to travel incentives, the government is introducing a 1.5% final income tax (PPh) incentive on royalties for published authors with a valid ISBN. Furthermore, air travel will receive a boost through a 100% Government-Borne VAT (DTP) facility for domestic economy class tickets. This initiative, backed by substantial budgets for both the mid-year and year-end holiday periods, aims to encourage domestic tourism and economic activity.

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