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View all search resultsNew stimulus package to boost economy in Q4, and beyond
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Visitors look at shoes for sale on Aug. 11 at a retail outlet in Tangerang City, Banten. (Antara/Putra M. Akbar)
T
he government is rolling out a new stimulus package to support consumer spending and employment in the fourth quarter of 2026, with some measures to remain in place after the turn of the year.
Haryo Limanseto, spokesman for the Office of the Coordinating Economy Minister, said in a press statement on Sunday that the stimulus was introduced to “enhance social protection while pushing the productivity of the real economy”.
Much of the latest package is a continuation of measures that have been in place since last year, such as the value added tax (VAT) waiver for purchases of houses and apartments, which has been in place since the beginning of 2025.
Under the program, no VAT is charged on the first Rp 2 billion (US$111,408) of homes costing no more than Rp 5 billion. The statement reveals that the VAT incentive will remain throughout 2027.
As it seeks to boost home ownership in the country, the government will also issue subsidized mortgages with a below-market interest rate of 6 percent for individuals earning less than Rp 17 million a month for homes that cost a maximum of Rp 500 million.
The government will also hand out 10 kilograms of rice per month for the entire fourth quarter for 33.2 million households, which will cost the state some Rp 17.5 trillion. This program has been ongoing since 2023.
Moreover, the government will hand out Rp 300,000 per month in cash for 13.3 million workers in the quarter, amounting to almost Rp 12 trillion in total, according to the statement.
