The measures run from late 2026 through 2027 and are intended to maintain public purchasing power. Airlangga pointed to growth of 5.47 percent as evidence that the economy is on the right track.
Support for households and workers
Food aid will provide 10 kilograms of rice per family to 33.24 million families. A wage subsidy of 900,000 rupiah per worker will go to 13.3 million workers earning up to 3,500,000 rupiah a month. Non-wage workers will receive job loss and death insurance at 50 percent.
Adults targeted by a new account-opening program will receive an initial balance of 50,000 rupiah. The programme covers 25.16 million adult residents.
Transport discounts and tax relief
The government will bear the 100 percent VAT on domestic economy-class airline tickets, targeting 3.75 million passengers. Train tickets will carry a 30 percent discount for 1.04 million passengers. Port service fees at 14 ports operated by ASDP will be waived for 1.42 million people.
Income tax under PPh Article 21 will be borne by the government for monthly incomes up to 10 million rupiah. Gold jewellery purity for VAT exemption has been changed to 99.9 percent from 99.99 percent.
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Housing and credit for small businesses
Homes priced up to 2 billion rupiah will carry a 100 percent VAT incentive, within a ceiling of 5 billion rupiah. Subsidised mortgages will carry a fixed rate of 6 percent.
Program credit for micro, small and medium enterprises has reached 303.9 trillion rupiah, realising 92.17 percent of the available ceiling. Airlangga said 68 percent of that financing went to productive sectors, a shift he described as a change from the usual pattern in which most credit went to consumption. New credit for poor women will carry an interest rate of 8 percent.
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