Indonesia unveils Rp31 trillion stimulus plan for late 2026 and 2027

Indonesia is preparing a Rp31 trillion temporary budget aimed at sustaining economic recovery in the fourth quarter of 2026 and into 2027. The package focuses on social protection, food security, labour support and housing incentives. It will provide bank accounts for all adults, initially targeting families in the bottom four income deciles, and distribute 10 kg of rice per month to those households.

Wage subsidies of Rp300,000 per month will be paid for three months to millions of workers, and tax relief will be extended to earners below Rp10 million monthly. In the housing sector, the government will maintain VAT subsidies for homes up to Rp2 billion and offer fixed-rate mortgages at 6 % for modest-priced homes. Additional measures include discounts on workers’ insurance contributions and an expanded job-loss insurance scheme. The stimulus plan was endorsed at a high-level meeting led by President Prabowo Subianto, with participation from the Coordinating Minister for Economic Affairs, the Finance Minister and relevant ministries.