Government Readies Rp786 Billion Incentive for Top Inflation-Control Regions

Economic Ministers Back Plan to Reward Best Performing Regions

Coordinating Minister for Economic Affairs Airlangga Hartarto has sought President Prabowo Subianto's approval to distribute Rp786 billion in incentives to regional governments demonstrating exceptional performance in inflation control through their respective Tim Pengendalian Inflasi Daerah (TPID). The proposed incentive program was discussed with Finance Minister Purbaya Yudhi Sadewa, confirming that the funds are already available.

Key Details of the Incentive Program

• Total incentive budget: Rp786 billion
• Recipients: Regions with outstanding TPID performance
• Purpose: To recognize and encourage effective inflation management
• Status: Funds are available and ready for distribution pending presidential approval

Context and Significance

This initiative reflects the government's commitment to maintaining macroeconomic stability while supporting regional governance. By rewarding effective inflation control measures, the central government aims to encourage best practices across all regions. The program demonstrates a coordinated approach between economic ministries and Bank Indonesia, as announced during the Pertemuan Tahunan Bank Indonesia (PTBI) 2025.

Implementation Timeline

While the exact timeline wasn't specified, the fact that funds are already confirmed available suggests a potentially immediate implementation following presidential approval. The administration's readiness to proceed indicates the priority given to this economic stabilization measure.