Indonesia posts 5.45 per cent growth as government rolls out stimulus
Rice aid and wage subsidies form part of fourth-quarter support, with separate transport incentives being prepared for the year-end holidays.
Indonesia’s economic expansion reached 5.45 per cent during the first half of 2026, according to Coordinating Minister for Economic Affairs Airlangga Hartarto. He credited investment and productive sectors in an October 21 briefing to President Prabowo Subianto at a Jakarta cabinet meeting.
Airlangga put global average growth at 3 per cent and said Indonesia led the G20 while recording one of ASEAN’s strongest performances. Manufacturing PMI stood at 52.4, with consumer sentiment at 118.1, he said.
The minister reported an unemployment rate of 4.65 per cent, a low last seen in 1994, and an improved Gini ratio of 0.368. He put the State Budget deficit at 1.24 per cent and lending growth at 13.65 per cent. Foreign exchange reserves totalled US$146.3 billion, sufficient for 6.5 months of imports.
To support purchasing power through year-end, the government is introducing fourth-quarter stimulus measures. It has allocated Rp17.54 trillion to supply 33.24 million households with 10 kilograms of rice each month. Wage support has a Rp11.97 trillion allocation, providing 13.3 million workers with monthly payments of Rp300,000 over three months.
Authorities are also preparing Rp883.4 billion in Christmas and New Year transport support for roughly 6.6 million travellers. Planned benefits comprise ticket discounts of 30 per cent for travel and ferries, special pricing at ASDP ports, and government coverage of VAT on domestic flights.
Prabowo has also ordered preparations for January 2027 programmes. These include internships with 150,000 places, vocational training for 300,000 people and personal income tax coverage for workers whose earnings are up to Rp10 million.
