Details of Indonesia's New Rp7.8 Trillion Stimulus Package

2 hours ago 1

TEMPO.CO, Jakarta - The government is set to launch a stimulus package to drive economic growth in the second semester of 2026. The total value of the prepared package amounts to Rp7.8 trillion, consisting of a series of transportation discounts and tax incentives.

The plan was unveiled by Coordinating Minister for Economic Affairs Airlangga Hartarto following a limited coordination meeting with several cabinet ministers at his office on Tuesday, May 26, 2026. He explained that the package would be deployed from the second quarter of 2026 through the second semester. "This is for the second semester," he noted.

Airlangga detailed the allocation of the funds, which includes a 1.5 percent Final Income Tax (PPh) incentive on writers' royalties. This tax deduction will automatically apply to all published authors, provided their books carry a valid International Standard Book Number (ISBN) identification code.

In addition, the government is introducing transport and aviation discounts to coincide with the school holiday period, as well as the Christmas 2026 and New Year 2027 (Nataru) holidays. For the upcoming school breaks, a total budget of Rp190.5 billion has been earmarked, targeting an estimated 3,074,899 beneficiaries.

Specifically for rail travel, a 30 percent fare reduction will be applied to ticket prices for travel between June 20 and July 5, 2026. Furthermore, a 30 percent discount on basic tariffs will be offered for PT Pelni sea transport during the travel window of June 20 to August 15, 2026, while ASDP ferry transport will be entirely exempt from port service fees from June 20 to July 5, 2026.

For the Nataru festive period, the government has allocated a separate budget of Rp161.4 billion, aiming to benefit 2,874,581 travelers. This package includes a 30 percent discount on train ticket fares for journeys taken between December 22, 2026, and January 4, 2027.

Furthermore, a 30 percent reduction on the basic tariff for PT Pelni sea transport will be available for travel from December 17, 2026, to January 10, 2027. Similarly, ASDP ferry transport will enjoy an exemption from port service fees starting from December 22, 2026, to January 10, 2027.

The government has also lined up air transportation stimuli, namely a 100 percent Government-Borne VAT (DTP) facility for domestic economy class airplane tickets. This ticket discount will run from June 24 to July 5, 2026, backed by an estimated budget of Rp472.7 billion to benefit a projected 2.3 million passengers.

During the Nataru holiday corridor from December 22, 2026, to January 10, 2027, the budget for the DTP airplane tickets will amount to roughly Rp722 billion, targeting 3.7 million passengers. For this year-end holiday period, the government is tossing in additional discount components, including a 50 percent reduction on the PJP2U (airport tax) and a 50 percent cut on the PJP4U service fee.

Furthermore, the administration will roll out the fourth phase of the National Internship Program in July 2026, backed by a Rp4.14 trillion budget aiming to absorb 150,000 participants. A national vocational program has also been mapped out for 220,000 Vocational High School (SMK) graduates and 50,000 workers hit by layoffs, carrying an estimated funding pool of Rp2.12 trillion.

Read: Indonesia to Give Tax Incentives for Book Writers

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