Indonesia allocates Rp31 trillion for fourth-quarter economic stimulus
Airlangga Hartarto said the package would be funded entirely through the 2026 state budget, with rice aid and wage subsidies among the measures.
Indonesia has set aside Rp31 trillion for economic stimulus in the fourth quarter of 2026, Coordinating Minister for Economic Affairs Airlangga Hartarto said. Speaking in Jakarta on 5 October, he confirmed that the full allocation would come from the 2026 state budget.
The package includes Rp17.5 trillion in rice assistance for 33,244,408 beneficiary households in income deciles 1–4. Each household is to receive 10 kg a month from October through December 2026. Wage subsidies for 13.3 million workers amount to Rp300,000 a month for three months, with a budget of almost Rp12 trillion.
Another measure provides for opening bank accounts for citizens aged over 17, with a focus on those in income deciles 1–4. Ministries and agencies are cross-checking their data before finalising the number of beneficiaries to ensure assistance reaches the intended recipients.
For 2027, the government will continue internships for 150,000 participants and vocational training for 300,000 people. Article 21 income tax reductions for workers earning below Rp10 million a month will extend across all sectors, covering 7.5 million workers. Changes to the non-taxable income threshold are also being discussed with the Finance Ministry.
Housing measures include extending government-borne VAT through 2027 for homes priced up to Rp2 billion. For properties costing up to Rp5 billion, the benefit will apply to the portion of the price up to Rp2 billion. The government is also preparing mortgages with a subsidised interest rate of 6% for people with fixed incomes of around Rp17 million, covering homes worth up to Rp500 million.
