Indonesia announces US$1.48 billion stimulus, mostly for food handouts

Indonesia is launching a significant stimulus package worth 26.34 trillion rupiah (US$1.48 billion) for the latter half of 2026, aiming to invigorate economic growth. The primary focus of this package, as announced by the Coordinating Economic Ministry, is on food handouts, which will account for 18.04 trillion rupiah of the total.

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The stimulus is mainly for food handouts, valued at 18.04 trillion rupiah, and its measures topped up a package worth 7.8 trillion rupiah announced last month.

This initiative builds upon a previous package and includes measures such as discounts on air, train, and sea transportation, alongside a paid internship program. Chief Economic Minister Airlangga Hartarto highlighted that the government will also cover value-added tax costs for airfares. A key component involves distributing 10kg rice packages to 33 million recipients starting next month, with a budget of 17.54 trillion rupiah allocated for this purpose.

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Indonesia will give a 10kg rice package to 33 million recipients starting from next month as part of the package, with the budget allocated at 17.54 trillion rupiah.

The government has set an ambitious target for economic growth this year, aiming for at least 5.4 percent, an increase from the 5.11 percent growth recorded last year. In the first quarter of 2026, Indonesia had already allocated 15 trillion rupiah towards food handouts and other fiscal stimulus measures, indicating a consistent effort to support the economy.

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Jakarta has set a target to bring economic growth to at least 5.4 per cent this year, higher than 5.11 per cent growth last year.