Arnoldus Kristianus, Jakarta – The government is preparing to roll out a Rp 12.8 trillion ($763.29 million) economic stimulus package in the first quarter of 2026, combining transport fare discounts and expanded social assistance to shore up growth early in the year.
Chief of Economic Affairs Minister Airlangga Hartarto said the first quarter is critical after Indonesia posted relatively weak growth at the start of last year.
"The target is to push economic activity higher because the first quarter is crucial. In the first quarter of last year, economic growth was relatively lower," Airlangga said at the Indonesia Economic Summit 2026 at Hotel Shangri-La Jakarta on Tuesday.
Indonesia's economy expanded just 4.87% in the first quarter of 2025. The government has since moved more quickly at the start of this year to keep growth on track toward its 5.4% target for 2026.
The stimulus package blends supply-side incentives and demand-side support. Transport fare discounts are aimed at easing costs and boosting mobility, while social assistance, including rice and cooking oil, is designed to strengthen household purchasing power.
"The budget allocation for transport discounts is around Rp 200 billion. The rest is for social assistance in the form of 10 kilograms of rice for two months, plus cooking oil for two months. That totals around Rp 12 trillion," Airlangga said.
Earlier, Coordinating Economic Affairs Ministry Secretary Susiwijono Moegiarso said the pre-Idulfitri stimulus was intended to lift first-quarter growth through a balanced policy mix.
"The approach is transport fare discounts and ticket discounts, which are more of a supply-side incentive. On the demand side, support continues to be rolled out to boost purchasing power," Susiwijono said. "Demand is strengthened and prices on the supply side are reduced so there is a meeting point."
The government plans to offer discounts on train, sea, and air travel, citing the transport sector's significant contribution to economic growth. Data from the Central Statistics Agency (BPS) show the transportation and warehousing sector grew 8.62% and contributed 6.10% to economic growth in the third quarter of 2025.
"That's why we continue to push for this. Previously, airline ticket discounts were around 13 to 16%. We are proposing that they could be even higher, with various alternative schemes," Susiwijono said.
Planned stimulus measures include:
- Transport discounts during the Eid al Fitr travel period, covering railways, sea transport, land transport, ferry crossings, and air travel
- Government-borne value-added tax (VAT) incentives for airline tickets
- Food assistance in the form of rice and cooking oil
- A graduate internship program, continuing a policy introduced in the fourth quarter of 2025