Indonesia rolls out new social and fiscal measures to boost purchasing power and growth

Indonesia's economic team disclosed a suite of stimulus actions for the fourth quarter of 2026, featuring a 10-kilogram rice distribution, a Rp300,000 monthly wage subsidy and a program to open bank accounts for people aged 17 and above, with priority for the poor. Looking ahead to 2027, the agenda expands to include a reduction in income tax for workers earning less than Rp10 million per month, a higher tax-free threshold, and a fixed-rate 6% mortgage scheme for middle-income homebuyers.

The state also plans to continue an internship scheme for 150,000 participants and provide vocational training to 300,000 individuals, while extending workplace injury and death benefits to informal workers and revising job-loss insurance. Together, these policies aim to preserve purchasing power now and enhance long-term productivity, investment and export capacity to meet a 6% growth goal. Economic data shows a 5.29% quarterly expansion and stable inflation, providing a backdrop for the shift toward higher-value production and financial inclusion.