Indonesian Government to Continue Economic Package in 2026

Economic Stimulus Measures

The Indonesian government has announced plans to continue its economic package in 2026, building on the success of the 2025 program ²

. The decision comes as the government seeks to maintain momentum in supporting economic growth and protecting consumers' purchasing power. According to Haryo Limanseto, Spokesperson for the Coordinating Ministry for Economic Affairs, the government is currently finalizing preparations for the new economic package ²

Source 2

https://finance.detik.com/berita-ekonomi-bisnis/d-8304566/paket-ekonomi-buat-geber-daya-beli-lanjut-di-2026-ini-bocorannya

.

Key Programs to Continue

At least five major programs are expected to be continued into 2026:

1. National Internship Program: Successfully attracted 102,696 participants from 724,880 applicants in its first three batches
2. Extension of 0.5% final income tax incentive for MSMEs until 2029
3. Government-borne Income Tax (PPh) Article 21 for workers in tourism and labor-intensive industries
4. VAT (PPN) exemption for housing sector
5. Discount on work accident insurance (JKK) and life insurance (JKM) for non-wage earners

Wage Subsidy Program Update

In a separate development, the government remained tight-lipped about the continuation of the Rp600,000 wage subsidy program for 2026 ¹

. Faried Abdurrahman Nur Yuliono, Head of the Public Relations Bureau at the Ministry of Manpower, stated that there is currently no official information regarding the program's continuation. The ministry will announce any new developments through official channels.

The wage subsidy program, which was implemented in 2025, benefited 16,048,472 workers ¹

. The government's cautious approach to announcing future plans reflects its commitment to careful planning and avoiding misinformation.

Economic Implications

The continuation of the economic package demonstrates the government's commitment to supporting economic growth and maintaining consumer purchasing power. The programs outlined are expected to have a positive impact on various sectors, particularly MSMEs and labor-intensive industries.