The government has launched another economic stimulus package worth IDR 26.34 trillion in the second half of 2026 to maintain people’s purchasing power amid global uncertainty. The package includes food assistance, transportation discounts, internship and vocational programs, as well as fiscal incentives for writers. 

Coordinating Minister for Economic Affairs Airlangga Hartarto explained that the stimulus program was again rolled out by the government as a proactive measure to anticipate possible external risks. Indonesia needs to continue maintaining its domestic economy amid ongoing global uncertainty. 

“The total stimulus issued by the government for the second half of this year is around IDR 26.34 trillion. Transportation stimulus incentives amount to around IDR 2.04 trillion, internship and vocational programs IDR 6.26 trillion, and food assistance IDR 18.04 trillion,” Airlangga said at a press conference on Monday, June 22. 

He explained that the stimulus programs had been formulated across ministries and agencies and had received approval from President Prabowo Subianto. The following is the list of stimulus measures that will be provided by the government until the end of this year: 

1. Tax Incentive for Writers 

The government is providing a final Income Tax (PPh) rate on writers’ royalties of 1.5%. This rate is lower than the previous scheme, which ranged from 5% to 35%. The policy is aimed at increasing writers’ net income while supporting the creative industry and national literacy. 

2. Transportation Discounts 

The government will again provide transportation incentives during the school holiday period and the Christmas and New Year holiday period. The incentives include discounts on train tickets, sea transportation, ASDP ferry crossings, as well as government-borne Value Added Tax (VAT DTP) for domestic economy-class airline tickets. 

Train

A 30% ticket discount will apply during the school holiday from June 20 to July 5, 2026, as well as during the Christmas and New Year holiday from December 22, 2026, to January 4, 2027. 

Pelni Ships

A 30% discount on base fares will apply during the school holiday from June 20 to August 15, 2026, as well as during the Christmas and New Year holiday from December 17, 2026, to January 10, 2027. 

ASDP

A discount on base port service tariffs will apply during the school holiday from June 20 to July 5, 2026, as well as during the Christmas and New Year holiday from December 22, 2026, to January 10, 2027. 

Airplanes

A 100% government-borne Value Added Tax (VAT DTP) incentive for domestic economy-class airline tickets will apply during the school holiday, as well as during the Christmas and New Year holiday. 

3. 0% Import Duty for Industrial LPG and Plastic Raw Materials 

The government has set a 0% import duty for LPG imports for the petrochemical industry and plastic raw materials. This step is being taken to reduce industrial production costs amid global uncertainty and supply chain disruptions. In addition, the policy is expected to help control inflation, as plastic is a key packaging material for various food and beverage products. 

4. 0% Import Duty on Aircraft Spare Parts 

Import duties on aircraft spare parts have been reduced to 0% to support the aviation industry and the maintenance, repair, and overhaul (MRO) sector. The government hopes this policy can increase the competitiveness of the domestic aircraft maintenance industry and reduce airlines’ operational costs. 

5. National Internship Program and Vocational Training 

The government is continuing the National Internship Program and Vocational Training in the second half of 2026, targeting 150,000 internship participants and 220,000 vocational training participants. The main targets of the program are senior high school and vocational school graduates, as well as victims of layoffs. In addition to improving workforce competencies, the program is expected to expand employment opportunities and serve as a stimulus for the community’s economy. 

6. Food Assistance 

The government is extending the food assistance program for three months, from July to September 2026. The program targets 33.24 million beneficiaries with a budget of IDR 17.54 trillion. This policy aims to maintain people’s purchasing power and help control food inflationary pressures. 

7. Soybean Subsidy for Tofu and Tempeh Producers 

The government is preparing a food supply and price stabilization program in the form of a soybean subsidy of IDR 2,000 per kilogram for tofu and tempeh producers. The subsidy will be provided for a quota of 250,000 tons, but will only apply if soybean prices exceed the reference purchase price. This policy aims to maintain the business continuity of tofu and tempeh MSMEs while curbing price increases at the consumer level. 

This article is published in partnership with Katadata 

Original article here