Jakarta. The government will spend Rp 26.34 trillion ($1.5 billion) on economic stimulus measures in the second half of 2026, including transportation incentives, food assistance, vocational training, and apprenticeship programs aimed at sustaining growth and supporting household purchasing power.

Chief Economic Minister Airlangga Hartarto said the package was approved following discussions among government ministries and guidance from President Prabowo Subianto.

“We have conducted cross-ministerial discussions and received direction from the president regarding a stimulus package for the second half of 2026 worth approximately Rp 26.34 trillion,” Airlangga told a press conference in Jakarta on Monday.

The government hopes the spending package will help maintain economic momentum through the end of the year. Indonesia is targeting economic growth of 5.4% in 2026 after the economy expanded 5.61% in the first quarter.

Transportation Incentives
Transportation incentives account for Rp 2.04 trillion of the package and are designed to stimulate travel during school holidays and the year-end Christmas and New Year period.

During the June–July school holiday season, train fares will be discounted by 30% from June 20 to July 5, while fares on state-owned Pelni passenger ships will be reduced by 30% from June 20 to Aug. 15. The government will also waive certain port service fees for river and maritime transportation.

The program has a budget of Rp 190.5 billion and is expected to benefit about 3 million passengers.

For air travel, the government will fully cover value-added tax on domestic economy-class airline tickets during the holiday period. The subsidy is expected to cost Rp 472.7 billion and reach approximately 2.3 million passengers.

Additional discounts will be offered during the Christmas and New Year travel season, including 30% reductions on train tickets and Pelni ship fares, supported by Rp 161.4 billion in funding for an estimated 2.8 million travelers.

Import and Workforce Support
The stimulus package also includes Rp 2.25 trillion in import-duty exemptions for liquefied petroleum gas (LPG), petrochemicals, aircraft spare parts, and plastic raw materials.

To support middle-income households and improve workforce readiness, the government will launch apprenticeship and vocational training programs beginning in July.

The apprenticeship initiative will receive Rp 4.14 trillion in funding and target 150,000 participants.

Meanwhile, vocational training programs will be allocated Rp 2.12 trillion to improve workforce skills, focusing on 220,000 vocational high school graduates and 50,000 workers affected by layoffs.

Food Assistance Measures
Food assistance represents the largest component of the package, with total funding of Rp 18.04 trillion.

The government will distribute 10 kilograms of rice per month to 32.24 million beneficiaries for three months beginning in July. The rice assistance program alone carries a budget of Rp 17.54 trillion.

In addition, tofu and tempeh producers will receive soybean subsidies of up to Rp 2,000 per kilogram when prices exceed government benchmarks. The program will cover a quota of 250,000 tons of soybeans and require Rp 500 billion in funding.

According to Airlangga, the food measures are intended to stabilize prices and protect consumers from rising living costs while supporting producers of staple foods.