The Indonesian government is poised to inject a significant Rp 7.8 trillion stimulus package into the economy, targeting robust growth in the second half of 2026. This comprehensive initiative blends a series of transportation discounts with strategic tax incentives, designed to invigorate various sectors.
These pivotal plans were unveiled by Coordinating Minister for Economic Affairs, Airlangga Hartarto, following a targeted coordination meeting with several cabinet ministers at his office on Tuesday, May 26, 2026. Minister Airlangga clarified that the stimulus measures are slated to commence in the second quarter of 2026 and will continue through the latter half of the year, with specific components dedicated to the H2 2026 period.
A notable aspect of the package includes a special tax incentive for authors: a final 1.5 percent Income Tax (PPh) on royalties. This progressive tax cut will be automatically applied to all eligible authors, provided their books possess a verifiable International Standard Book Number (ISBN), simplifying access to the benefit.
In a move to stimulate domestic travel and support the tourism sector, the government is rolling out substantial discounts on transportation and airfares. These discounts are strategically timed to coincide with both the 2026 school holiday period and the subsequent Christmas 2026 and New Year 2027 (Nataru) celebrations. For the upcoming school holidays, an allocation of Rp 190.5 billion has been set aside, expected to benefit nearly 3.1 million individuals.
During the school holiday season, train travel will see a generous 30 percent reduction in ticket fares for journeys undertaken between June 20 and July 5, 2026. Concurrently, sea transport services provided by PT Pelni will offer a 30 percent discount on basic fares for trips scheduled from June 20 to August 15, 2026. Furthermore, ferry services operated by ASDP will provide a complete exemption from port service fees during the period of June 20 to July 5, 2026.
As the nation prepares for the busy Nataru period, the government has allocated an additional Rp 161.4 billion, aiming to assist over 2.8 million beneficiaries. This includes a 30 percent discount on train tickets for travel between December 22, 2026, and January 4, 2027. PT Pelni will again offer a 30 percent discount on basic sea transport fares for journeys from December 17, 2026, to January 10, 2027, while ASDP ferry services will continue to waive port service fees from December 22, 2026, to January 10, 2027.
The stimulus also extends its reach to air travel, offering a 100 percent government-borne VAT (Value Added Tax) for domestic economy class airline tickets. This significant airfare discount will be available from June 24 to July 5, 2026, supported by an estimated budget of Rp 472.7 billion and targeting 2.3 million passengers.
For the Nataru travel peak, specifically from December 22, 2026, to January 10, 2027, the budget for government-borne VAT on air tickets is substantially increased to approximately Rp 722 billion, aiming to benefit an impressive 3.7 million passengers. During this critical period, additional airfare components will also receive a boost, with a 50 percent discount on both PJP2U (Airport Tax) and PJP4U, further easing travel costs.
Beyond direct financial incentives, the government is also prioritizing human capital development. The fourth phase of the National Internship Program is slated for launch in July 2026, backed by a substantial budget of Rp 4.14 trillion and targeting 150,000 participants. Complementing this, a national vocational program will be implemented, supporting 220,000 Vocational High School (SMK) graduates and 50,000 workers affected by layoffs, with an estimated fund of Rp 2.12 trillion, reinforcing efforts to enhance skills and boost employment across the nation.
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Summary
The Indonesian government has announced a comprehensive Rp 7.8 trillion stimulus package aimed at boosting economic growth in the second half of 2026. Unveiled by Coordinating Minister Airlangga Hartarto, the initiative, starting from Q2 2026, integrates transportation discounts with strategic tax incentives. A key measure includes a special 1.5 percent final Income Tax on royalties for authors whose books possess an International Standard Book Number (ISBN).
The package provides significant transportation discounts for both the 2026 school holidays and the Christmas/New Year period, covering train, sea, and ferry services, along with government-borne VAT for domestic economy class airline tickets. Furthermore, the stimulus allocates substantial funds for human capital development, launching the National Internship Program for 150,000 participants and a national vocational program supporting 220,000 vocational graduates and 50,000 laid-off workers.