Government Ensures 2026 Economic Stimulus Package I is Well-Targeted

By: Rizky Fadillah Pratama )*

The government ensures that the implementation of the 2026 Economic Stimulus Package I is on target to maintain public purchasing power and strengthen the momentum of national economic growth at the start of the year. This policy was launched ahead of Ramadan and Eid al-Fitr 2026 as part of a strategy to maintain economic stability while providing protection for groups in need.

President Prabowo Subianto is paying special attention to the implementation of the stimulus package to ensure its benefits are truly felt by the wider community. This directive emphasizes the importance of the effectiveness of government programs, particularly in supporting domestic consumption, which has been the backbone of Indonesia’s economic growth.

This stimulus package is designed comprehensively, taking into account various aspects that directly impact public economic activity. The government is not only focusing on increasing mobility but also strengthening purchasing power through social assistance and ensuring the smooth distribution of goods and services during Ramadan and Eid al-Fitr.

Cabinet Secretary Teddy Indra Wijaya explained that the government has prepared several key policies to maintain smooth public mobility while maintaining economic momentum. One important policy is the provision of transportation incentives, supported by a budget of IDR 911.16 billion sourced from the State Budget (APBN) and non-APBN support.

This incentive program covers various modes of transportation used by the public. The government is providing a 30 percent discount on train fares, targeting 1.2 million passengers. Furthermore, a 30 percent discount on sea transportation is also being offered, targeting hundreds of thousands of users, and exemption from port service fees for ferry services, targeting millions of passengers and vehicles.

Stimulus is also being provided to the domestic air transportation sector through a 17 to 18 percent discount on economy class airline tickets. This policy aims to expand public access to more affordable transportation services while simultaneously encouraging increased economic activity in various regions.

In addition to transportation incentives, the government is implementing a work-from-anywhere or flexible working arrangement policy for a specific period starting in March 2026. This policy aims to regulate the distribution of public mobility more equitably, thereby reducing travel congestion while maintaining work productivity.

The government is also strengthening social protection by distributing food assistance to 35.04 million beneficiary families from the lowest decile. Assistance in the form of rice and cooking oil was provided for two months at once, with a total budget of IDR 11.92 trillion. This program was designed to maintain the purchasing power of low-income communities during a period of increased consumption needs.

Coordinating Minister for Economic Affairs, Airlangga Hartarto, assessed that economic stimulus is a crucial part of maintaining national growth momentum. He emphasized that the government continues to optimize various growth engines, including state spending, public consumption, and business investment. This step is considered crucial to ensure Indonesia has a strong foundation for higher economic growth.

Airlangga also observed that well-targeted stimulus can maintain national economic stability amidst ongoing global challenges. Indonesia even managed to record one of the highest growth rates among G20 countries, demonstrating the resilience of the national economy maintained thanks to responsive and targeted policies.

National economic performance is supported by continued strong household consumption, increased investment, and government spending targeted at priority programs. The government is utilizing stimulus as a strategic instrument to maintain domestic demand while simultaneously boosting productive sectors such as industry, transportation, and trade.

Finance Minister Purbaya Yudhi Sadewa is optimistic that the government’s economic stimulus will have a positive impact on economic growth in the first quarter of 2026. He believes that providing transportation incentives is a strategic step to stimulate public economic activity, especially during national holidays.

Previous experience shows that government stimulus can significantly increase public mobility and economic activity. During the year-end holiday period, for example, increased mobility and tourism activities successfully drove economic growth to a solid level.

The government is targeting national economic growth in 2026 to be in the positive range, supported by various priority programs. The focus of developmentThe stimulus is directed at strategic sectors with a broad impact on the economy, including agriculture, the manufacturing industry, and the digital economy.

Furthermore, the government continues to strengthen the economic foundations through structural reforms, increased investment, and regulatory simplification. These efforts aim to create a more competitive economic ecosystem capable of attracting more investment, thereby expanding employment opportunities and improving public welfare.

The implementation of well-targeted economic stimulus is clear evidence of the government’s commitment to maintaining national economic stability. This policy not only provides short-term benefits but also strengthens the foundation for long-term economic growth.

With a measured strategy and targeted implementation, the government is optimistic that the economic stimulus will have a significant impact on increasing national economic activity. The success of this program is expected to maintain growth momentum, improve public welfare, and strengthen Indonesia’s economic resilience amidst global dynamics.

)* The author is a Strategic Issues Observer

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