By: Muhammad Andi)*
The global economy will continue to face significant challenges throughout 2026. Geopolitical uncertainty, slowing global trade, fluctuating commodity prices, and pressure on global supply chains are all factors impacting various countries, including Indonesia. In this situation, the government’s ability to maintain domestic economic stability is crucial to maintaining economic growth and ensuring public welfare is not compromised.
The launch of the Rp26.34 trillion economic stimulus package for the second half of 2026 demonstrates the government’s proactive approach to maintaining national growth momentum. This policy focuses not only on economic growth figures but also places the community at the center of national economic recovery and strengthening efforts.
The stimulus package, which includes fiscal incentives, transportation support, social protection, industrial strengthening, vocational programs, and food aid, demonstrates a comprehensive approach. These policies are designed to maintain public purchasing power, increase domestic consumption, stimulate business activity, and strengthen national economic resilience amidst evolving global dynamics.
Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the government continues to safeguard the domestic economy through proactive measures to anticipate various external risks that could impact the national economy. The statement emphasized that the government is not waiting for the impact of the crisis to occur but is instead taking preventative measures early to ensure the national economy remains on a positive growth path.
One crucial aspect of this economic stimulus is efforts to stimulate domestic demand. Household consumption has long been a key driver of Indonesia’s economic growth. Therefore, maintaining public purchasing power is a strategic step that must be consistently implemented.
Providing transportation incentives during school holidays and the Christmas and New Year period is a policy with multiple impacts. Discounts on train and ferry tickets, as well as exemptions from certain transportation fees, not only reduce public expenses but also revitalize the tourism, trade, hospitality, and micro-enterprise sectors in various regions.
The VAT subsidy on domestic economy class airfare also has a positive impact on public mobility. With more affordable travel costs, inter-regional economic activity can increase, thus driving growth in the services and trade sectors. Increased mobility will create greater economic turnover, particularly in tourist destinations and centers of economic growth.
On the other hand, the government’s attention to the industrial sector through lowering import duties on raw materials and industrial components demonstrates its commitment to maintaining national competitiveness. The availability of cheaper raw materials will help industries maintain production, preserve jobs, and improve business efficiency amidst global economic challenges.
This step is crucial given the industrial sector’s significant contribution to job creation and economic growth. Support for the petrochemical, plastic raw materials, and aviation spare parts industries demonstrates the government’s commitment to maintaining optimal national supply chains.
Trade Minister Budi Santoso emphasized that the government continues to strive to maintain public purchasing power through various programs involving the modern retail and e-commerce sectors. He stated that all elements of the nation need to work together to revitalize the national economy and withstand the impact of the global crisis.
This statement reflects the importance of collaboration between the government, businesses, and the public. Retail discount programs involving thousands of outlets and shopping centers demonstrate the strategic role the private sector plays in maintaining domestic consumption activity.
The BINA and Back to School programs, involving tens of thousands of retail outlets, are expected to generate significant economic transactions. These activities not only benefit consumers but also stimulate the domestic distribution chain, trade sector, and manufacturing industry.
At the same time, protecting vulnerable groups remains a government priority. The extension of rice aid to tens of millions of recipients demonstrates the government’s commitment to maintaining community resilience in the face of economic pressures.
The soybean price stabilization program for tofu and tempeh producers is also a crucial step in maintaining food availability while protecting small businesses. This policy will help maintain food price stability and prevent pressure on the cost of living.
Thus, the economic stimulus package for the second half of 2026 is not merely a short-term fiscal policy, but rather a strategic instrument to maintain a balance between economic growth and social protection. This policy demonstrates the government’s commitment to ensuring that the benefits of development are felt widely by the public.
Amid ongoing global uncertainty, strengthening domestic demand is the right choice. Maintaining public consumption, maintaining industry, maintaining jobs, and strengthening social protection will form a crucial foundation for national economic resilience.
The success of this stimulus package will undoubtedly require the support of all parties. Synergy between the government, the business sector, and the public will determine the policy’s effectiveness in maintaining economic stability while improving public welfare. With the right steps and responsive policies, the Indonesian economy has a significant opportunity to maintain strong, inclusive, and sustainable growth amidst various global challenges.
*The author is an economic observer