Key facts
- Indonesia announced a 26.34 trillion rupiah ($1.48 billion) economic stimulus package for the second half of 2026.
- The package includes 0% import tariffs on LPG and plastic raw materials.
- Transport subsidies of up to 30% will be offered during holiday periods.
- Food assistance will be provided to 33.24 million beneficiaries.
- A soya bean price stabilization program is also included.
Indonesia has announced an economic stimulus package totaling 26.34 trillion rupiah ($1.48 billion) for the latter half of 2026. This initiative aims to bolster economic growth and mitigate the impacts of the global energy crisis and domestic pressures that have led to a significant slump in the nation's currency.
The package features trade and industry support, notably through the elimination of import tariffs on liquefied petroleum gas (LPG) and plastic raw materials. Coordinating Economic Minister Airlangga Hartarto stated these measures are designed to alleviate supply chain disruptions in the petrochemical sector, stabilize production costs, and curb inflation, particularly for consumer goods. The conflict in the Middle East has exacerbated global petrochemical supply chain issues, impacting Indonesia, which relies heavily on imports for these products.
On the demand side, the stimulus includes transport subsidies of up to 30% on fares during school holidays and year-end festivities to encourage mobility and boost household consumption. Additionally, food assistance will be extended to 33.24 million beneficiaries from July to September, with a budget of 17.54 trillion rupiah. A program to stabilize soybean prices is also being implemented to support producers of tofu and tempeh, who are facing persistent cost pressures due to high import dependency.
The Indonesian rupiah has depreciated by nearly 7% year-to-date, influenced by external uncertainties and investor sentiment. This depreciation has increased the risk of imported inflation, especially for energy and raw materials. In response, Bank Indonesia recently raised its benchmark interest rate by 50 basis points to stabilize the currency and manage inflation expectations. The government plans to continue close coordination with the central bank and finance ministry to ensure macroeconomic stability and sustain domestic demand.