Jakarta. Indonesia is preparing a series of fiscal measures to sustain strong economic momentum into the second quarter of 2026, including a Rp 55 trillion ($3.2 billion) annual bonus for civil servants to be disbursed in June.
Coordinating Minister for Economic Affairs Airlangga Hartarto said the bonus –commonly known as the 13th-month salary — is aimed at supporting household purchasing power and reinforcing domestic demand.
“We will maintain people’s purchasing power, and the 13th salary for civil servants is expected to be disbursed in June. This will also support economic growth,” Airlangga said at his office in Jakarta on Tuesday.
The announcement follows data from the Central Statistics Agency (BPS) showing that Indonesia’s economy grew 5.61% year-on-year in the first quarter, its strongest quarterly expansion in five years.
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The government is also seeking to accelerate public spending, which was a key driver of first-quarter growth and is expected to remain a major contributor in the months ahead.
State expenditure reached Rp 815 trillion ($46.7 billion) in Q1, up 31.4% from a year earlier. However, the surge in spending has widened the fiscal deficit to Rp 240.1 trillion, equivalent to 0.93% of gross domestic product (GDP).
“To boost economic growth in the second quarter of 2026, one of our priorities will be government spending. It supported growth in Q1 and will continue to do so in Q2,” Airlangga said.
He stressed that fiscal policy will remain a critical tool to sustain purchasing power while acting as a buffer against global economic volatility.
Beyond civil servant bonuses, the government plans Rp 7.3 trillion in direct cash assistance for 10 million households and food aid for 52 million families.
To cushion the impact of rising global energy prices, Indonesia has allocated Rp 356.8 trillion ($20.4 billion) in energy subsidies, aimed at keeping living costs in check.
Tourism and Investment Push
The government is also looking to capitalize on the mid-year holiday season to boost tourism, including transport fare discounts during June-July, which coincide with school holidays and religious festivities.
Authorities are preparing visa-free entry facilities for travelers from countries such as Australia, Japan, and South Korea, as well as permanent residents of Singapore, in a bid to lift international visitor arrivals.
On the investment front, the government plans to build 81,000 homes in the second quarter as part of a long-term target to construct 3 million houses for low-income households. For 2026, the program targets 350,000 homes with a budget allocation of Rp 37.1 trillion.
To strengthen the real sector, disbursement of subsidized microcredit (KUR) is targeted to reach Rp 160 trillion by the end of Q2, expanding access to financing for small and medium enterprises, Airlangga said.
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