Indonesian Government Prepares IDR 26.34 Trillion Stimulus
The government remains confident that the national economic growth target for the second quarter of 2026 will stay above 5 percent, despite the global economy remaining overshadowed by uncertainty. This optimism is driven by strong investment realization and various incentive policies rolled out during the first half of the year.
Coordinating Minister for Economic Affairs Airlangga Hartarto stated that investment remains the primary driver supporting economic activity during the April–June 2026 period. Government-provided stimuli are also considered to be starting to impact business sector dynamics.
“It remains above 5 percent. The second quarter is still driven by investment and various government-promoted incentives,” Airlangga said in Jakarta on Friday (July 31, 2026).
He expects this growth trend to continue into the second half of the year. The government anticipates that rising state spending, coupled with the influx of new investments, will serve as the main pillars of economic growth in the third and fourth quarters of 2026.
However, Airlangga acknowledged that there is still work to be done to enhance investment appeal. One issue frequently raised by investors is the slow licensing process in several sectors.
He emphasized that the government is continuously taking steps to “de-bottleneck”—or remove—investment barriers to make licensing processes faster and more efficient.
“Investment interest is relatively high, but investors have requested action on several de-bottlenecking issues, including licensing,” he said.
To maintain economic growth momentum, the government has also prepared a stimulus package worth IDR 26.34 trillion for the second half of 2026. This policy is expected to sustain public purchasing power while strengthening national economic activity.
The stimulus is divided into three main categories: economic incentives worth IDR 2.4 trillion, apprenticeship and vocational training programs totaling IDR 6.26 trillion, and food assistance amounting to IDR 18.04 trillion. Airlangga previously explained that the policy package was designed to bolster domestic consumption and strengthen the labor market, while also maintaining economic stability amidst a challenging global landscape.
“The total stimulus issued by the government in the second half of the year amounts to approximately IDR 26.34 trillion,” Airlangga said during a press conference on June 22, 2026.
The government hopes that the combination of sustained investment growth, state spending, and economic stimulus will keep Indonesia’s economic growth rate within the target range through the end of 2026.
