Indonesia Eyes Social Protection Disbursements to Boost Purchasing Power

5 hours ago 3

February 10, 2026 | 08:04 pm

TEMPO.CO, Jakarta - The Indonesian Ministry of Finance has prepared several measures to help Indonesia's economic growth reach 5.6 percent in the first quarter of 2026. One of the key strategies is accelerating the disbursement of social protection programs (Perlinsos) to support people's purchasing power from the beginning of the year.

"We will carry out a number of Perlinsos programs in the first quarter [of 2026]," said the Deputy Minister of Finance, Juda Agung, after the Economic Outlook 2026 event by CNBC Indonesia at Hotel Kempinski on Tuesday, February 10, 2026.

According to Juda, the social protection programs to be disbursed in the first few months of 2026 will have direct impacts on household consumption. Meanwhile, accelerating government spending is the key to driving growth in the first quarter, as government expenditure realization tends to be slow during that period.

"In the first quarter, our baseline is 5.5 percent. We will push it to 5.6 percent with several expenditures that can be carried out in this first quarter," he said.

Prior to this, Finance Minister Purbaya Yudhi Sadewa also expressed confidence in the prospects for economic growth in 2026. The government even targets to boost economic growth to nearly 6 percent, as economic trends improved at the end of 2025.

"Although it's set at 5.4 percent in the State Budget, we'll try to push it towards 6 percent for 2026," said Purbaya.

Purbaya believed Indonesia's economic growth has improved with 5.39 percent year-on-year during the fourth quarter of 2025, despite falling short of the government target of over 5.5 percent.

The government has earmarked Rp508.2 trillion in the state budget this year for social protection programs, up 8.6 percent compared to the previous year's budget.

The social protection budget is allocated for basic needs amounting to Rp315.5 trillion, education services Rp37.5 trillion, health services Rp69 trillion, and community empowerment programs Rp86.2 trillion.

Ilona Estherina contributed to the writing of this article.

Read: Vice Finance Minister: Indonesia's Q1 2026 Growth to Surpass 5.39%

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