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Economic Stimulus Package I-2026 Boosts Economic Growth in the First Quarter

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JAKARTA – The government continues to accelerate the implementation of Economic Stimulus Package I-2026 to boost national economic growth in the first quarter of this year.

Coordinating Minister for Economic Affairs Airlangga Hartarto stated that several priority programs, including government spending and social assistance, are expected to have a direct impact on economic activity.

He explained that the budget realization for the Free Nutritious Meals program in the first quarter is estimated to reach IDR 60 trillion.

“And this will certainly also stimulate the economy,” he said.

In addition, the government is providing various transportation incentives to support public mobility. These incentives include a 30 percent discount on train tickets, a 30 percent discount on sea transportation, up to 100 percent discount on ferry services, and a 17-18 percent discount on airline tickets.

“Then, regarding aircraft, it’s 17-18 percent, compared to around 11 percent last year. Then there’s the toll discount. The total budget estimate is IDR 911.16 billion, of which IDR 639.86 billion is from the state budget and IDR 271.5 billion from non-state budget,” explained Airlangga.

In the social protection sector, the government is also distributing food assistance to low-income communities.

“This consists of 10 kilograms of rice and 2 liters of cooking oil for 35.04 million beneficiary families, or deciles 1-4, with a budget of IDR 11.92 trillion. Regional governments and related agencies are expected to ensure smooth logistics,” said Airlangga.

A flexible work policy, or work from anywhere (WFA), will also be implemented on March 16, 17, 25, 26, and 27, 2026, to reduce travel congestion and maintain productivity.

Meanwhile, Finance Minister Purbaya Yudhi Sadewa is targeting economic growth in the first quarter of 2026 to be in the range of 5.5 to 6 percent. The government is ensuring that the Rp 809 trillion in state spending at the beginning of the year will be optimally absorbed to maintain economic momentum.

“So, we will spend all of our spending in the first quarter to ensure that the momentum of economic growth will continue,” he said.

Deputy Finance Minister Juda Agung added that the baseline economic growth in the first quarter is estimated at 5.5 percent and could increase thanks to stimulus and accelerated government spending.

“This means that going from a baseline of 5.5% to 5.6% means an additional 0.1% growth,” he explained.

He also emphasized that the acceleration of spending and social assistance will continue.

“Stimulus and social assistance will continue to be implemented, all of them. There are several social protection programs that we can implement in the first quarter, so we will implement them immediately,” said Juda.

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