What's in Indonesia's Economic Stimulus Package for Q4 2026? - Tempo.co English
TEMPO.CO, Jakarta - The Indonesian government is preparing a series of economic stimulus measures for the fourth quarter of 2026.
The measures will focus on protecting household purchasing power, expanding employment opportunities, and supporting business sustainability.
Coordinating Ministry for Economic Affairs spokesperson Haryo Limanseto said the government was preparing several programs to support economic recovery while strengthening social protection and productivity in the real sector.
“The government is committed to ensuring that economic recovery remains inclusive by strengthening social protection while encouraging productivity in the real sector. Various follow-up programs for the fourth quarter of 2026 and 2027 have been designed in a measured manner to maintain purchasing power, strengthen workers’ competitiveness, and support business sustainability,” Haryo said in a statement in Jakarta on Monday, October 5, as quoted by Antara.
One of the planned measures is the provision of bank accounts for all citizens aged 17 and above, with the program initially focusing on people in the bottom four income deciles. The government is still cross-checking the targeted number of beneficiaries with relevant ministries and agencies.
To strengthen food security, the government will provide 10 kilograms of rice per month from October to December 2026. The program has a budget of Rp17.5 trillion and will cover 33.24 million beneficiary families in the bottom four deciles.
The government will also extend wage subsidies for three months, providing Rp300,000 per month to 13.3 million workers. The program is expected to require nearly Rp12 trillion in funding.
For 2027, the government is preparing internship programs for 150,000 participants and vocational training for 300,000 people.
The government also plans to expand the Article 21 income tax reduction to workers earning less than Rp10 million per month across all sectors. The measure is expected to benefit 7.5 million workers. The government is also discussing an adjustment to the non-taxable income threshold, or PTKP, with the Finance Ministry.
In the housing sector, the government plans to extend the value-added tax borne by the government, or PPN DTP, through 2027 for homes priced at up to Rp2 billion.
The incentive will also apply to the first Rp2 billion of the price of homes costing up to Rp5 billion.
The government is also preparing subsidized mortgages at a fixed interest rate of 6 percent for fixed-income workers earning around Rp17 million per month, with the program covering homes priced at up to Rp500 million.
For 2027, the government plans to provide discounts on JKK and JKM contributions for non-wage workers. The use of Job Loss Insurance, or JKP, will also be extended to six months, with benefits adjusted according to recipients’ income levels.
In the precious metals sector, the government plans to introduce a new VAT standard for 99.9 percent pure precious metals to facilitate fiscal incentives.
Haryo said the combination of policies reflected the government's role in protecting vulnerable groups while supporting key sectors of the economy.
“The preparation of a temporary budget allocation of around Rp31 trillion, which is currently being reviewed by the Finance Ministry, is focused on ensuring that all these programs can be felt directly by the public and serve as a strong foundation for achieving the 2027 economic growth target,” Haryo said.
The priority programs were agreed at a coordination meeting chaired by President Prabowo Subianto at the State Palace. The meeting was attended by Coordinating Minister for Economic Affairs Airlangga Hartarto, Finance Minister Suahasil Nazara, and heads of relevant ministries and agencies.
