Indonesia Prepares Economic Stimulus For 4Q 2026, 2027

By Nik Nurfaqih Nik Wil

JAKARTA, Oct 5 (Bernama) -- Indonesia is preparing a series of economic stimulus measures for the fourth quarter of 2026 and into 2027, including continued rice assistance for more than 33.2 million low-income families and expanded income tax relief for 7.5 million workers next year.

Coordinating Ministry for Economic Affairs spokesman, Haryo Limanseto said Rp17.5 trillion (RP1 million=RM228.2) had been allocated for rice assistance, providing eligible families in the four lowest income deciles with 10 kilogrammes per month from October to December.

He said worker protection would also be strengthened through another round of wage subsidies totalling nearly Rp12 trillion for 13.3 million workers, with each eligible worker receiving Rp300,000 per month for three months.

“The government is committed to ensuring that the economic recovery proceeds inclusively by strengthening social protection while encouraging productivity in the real sector,” he said in a statement.

The measures were recently agreed at a coordination meeting led by President Prabowo Subianto at the State Palace, involving Coordinating Minister for Economic Affairs, Airlangga Hartarto, the finance minister and officials from relevant ministries and agencies.

As another fourth-quarter measure, Haryo said the government was preparing a programme to expand bank account access among Indonesians aged over 17, initially focusing on lower-income groups, with the number of beneficiaries still being verified.

Moving into 2027, he said income tax relief for workers earning below Rp10 million per month would be expanded to all sectors, covering 7.5 million workers, while internship and vocational training programmes would continue for 150,000 and 300,000 participants respectively.

In the housing sector, Haryo said the government would extend through 2027 a value-added tax incentive covering homes priced up to Rp2 billion, while homes costing up to Rp5 billion would receive the incentive on the first Rp2 billion of the purchase price.

The government is also preparing subsidised mortgages carrying a six per cent interest rate for fixed-income earners of around Rp17 million per month to purchase homes costing up to Rp500 million, he said.

-- BERNAMA