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🇮🇩 Indonesia /Economy & Trade

Indonesia to launch Rp 7.8 trillion stimulus package for second-half growth

From Tempo · () Indonesian

Translated from Indonesian and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources New plan
  • Indonesia will launch an economic stimulus package worth Rp 7.8 trillion in the second half of 2026 to boost growth.
  • The package includes transportation discounts for holidays and tax incentives for authors.
  • Stimulus measures target various sectors, including air travel, sea transport, and national internship programs.

Indonesia is set to roll out a new economic stimulus package totaling Rp 7.8 trillion, aimed at bolstering economic growth in the latter half of 2026. The initiative, announced by Coordinating Minister for Economic Affairs Airlangga Hartarto, will feature a range of measures including transportation discounts and tax incentives.

The stimulus will be implemented from the second quarter through the second half of 2026. A key component is a tax incentive for authors, offering a final income tax rate of 1.5 percent on royalties for books with an ISBN. This aims to support the creative industry.

Significant discounts are also planned for transportation during major holiday periods. For the school holidays, Rp 190.5 billion is allocated, benefiting over 3 million people. This includes a 30 percent fare reduction on trains from June 20 to July 5, 2026, and a similar discount on PT Pelni sea transport from June 20 to August 15, 2026. Ferry services operated by ASDP will see port service fees waived during the June 20 to July 5 period.

During the Christmas and New Year holidays (Nataru), Rp 161.4 billion is budgeted. This includes a 30 percent train fare discount between December 22, 2026, and January 4, 2027, and a 30 percent discount on PT Pelni sea transport from December 17, 2026, to January 10, 2027. ASDP ferry services will again have port fees waived from December 22, 2026, to January 10, 2027.

Air travel is also included, with a 100 percent Value Added Tax (VAT) subsidy for economy class domestic flights from June 24 to July 5, 2026, estimated at Rp 472.7 billion. For the Nataru period, a Rp 722 billion VAT subsidy is planned for domestic flights, alongside a 50 percent discount on airport taxes. Additionally, the National Internship Program will continue its fourth phase in July 2026 with an allocation of Rp 4.14 trillion, targeting 150,000 participants. A national vocational program will also be prepared for 220,000 vocational school graduates and 50,000 laid-off workers.

This is for the second half.

· Airlangga HartartoExplaining the timing of the economic stimulus package.
About this summary

Originally published by Tempo in Indonesian. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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