The Indonesian government is preparing an economic stimulus package worth around IDR 31 trillion (USD 1.6 billion) for the fourth quarter of 2026, with measures aimed at protecting purchasing power, expanding employment opportunities and supporting business activity. 

The package combines social assistance, wage subsidies, tax relief, housing incentives and employment programmes as the government seeks to sustain economic activity through the end of the year and support its 2027 growth target. 

“We are committed to ensure an inclusive economic recovery by strengthening social protection, while simultaneously boosting productivity in the real sector,” Coordinating Ministry for Economic Affairs spokesperson Haryo Limanseto said, as reported by ANTARA News on 5 October. He said the programmes were designed to “maintain purchasing power, strengthen worker competitiveness, and support the sustainability of the business sector.” 

One of the largest measures is a rice assistance programme worth IDR 17.5 trillion (USD 951 million). Under the programme, 33.2 million beneficiary families in the lowest four income deciles will receive 10 kilograms of rice per month from October through December. 

The government is also providing wage subsidies to support workers. According to ANTARA News, 13.3 million workers will receive IDR 300,000 (USD 16) per month for three months through the Wage Subsidy Assistance programme, with a total budget of IDR 12 trillion (USD 652 million). 

Tax support is another component of the package. The reduction in Article 21 income tax for workers earning less than IDR 10 million (USD 543) per month has been expanded to all sectors, covering an estimated 7.5 million workers. The government is also discussing adjustments to the non-taxable income threshold. 

Housing support will be extended as well. The government will continue its Value Added Tax borne by the government facility through 2027 for houses valued at up to IDR 2 billion (USD 108,000), while homes worth up to IDR 5 billion will receive the incentive on the first IDR 2 billion of their value, ANTARA reported. 

The stimulus has also been reflected in investor sentiment. RRI’s Voice of Indonesia, reporting on 6 October, said the IDR 31 trillion package was among the catalysts being watched by investors as the Jakarta Composite Index (JCI) opened higher. The JCI rose 20.27 points, or 0.33 percent, to 6,139.13, while the LQ45 blue-chip index gained 0.37 percent. 

Phintraco Sekuritas Head of Research Ratna Lim said the index still had room to strengthen. “It is estimated that the JCI’s upward trend has the potential to continue, testing the 6,150–6,200 level,” she said, as quoted by RRI. 

The Jakarta Globe also reported on 6 October that Indonesian stocks rose as the new stimulus package boosted market sentiment. The report highlighted the government’s IDR 31 trillion allocation as a domestic factor supporting investor confidence alongside developments in global markets. 

Beyond the immediate measures, the government plans to continue employment programmes in 2027, including internships for 150,000 participants and vocational training for 300,000 people, according to ANTARA. 

Limanseto said the Ministry of Finance was reviewing the temporary IDR 31 trillion allocation to ensure the programmes could be implemented promptly and contribute to the government’s 2027 economic growth target.