Indonesia Disburses Rp55 Trillion Rupiah in THR 2026, Targets 5.6% Economic Growth in First Quarter

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RADAR TULUNGAGUNG – Indonesia will inject Rp55 trillion ($3.5 billion) through THR 2026 as part of a broad stimulus push ahead of Eid al-Fitr 1447 Hijri. The government aims to lift household spending and drive economic growth to between 5.5 and 5.6 percent in the first quarter of 2026.

Coordinating Economic Affairs Minister Airlangga Hartarto announced the policy during a joint press briefing with cabinet members and ride-hailing executives. He described the holiday allowance as a key tool to strengthen purchasing power before Lebaran.

The government has earmarked Rp22.2 trillion for 2.4 million central government employees, including military and police personnel. It will send Rp20.2 trillion to 4.3 million regional civil servants. In addition, 3.8 million pensioners will receive Rp12.7 trillion.

Authorities will transfer the allowance in full. The payment covers base salary, family and food allowances, structural allowances, and performance incentives under current regulations.

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The government will begin distributing THR 2026 on February 26, 2026. Officials stressed that THR differs from the 13th salary, which the state will release separately in June 2026.

Eligible recipients include permanent and probationary civil servants, government contract employees, state officials, members of the armed forces, police officers, and retirees.

The government requires private firms to pay THR 2026 in full and forbids installment schemes. Employers must complete payments no later than seven days before Eid.

Employees who have worked for at least one year will receive one month’s salary. Those with shorter tenures will obtain a proportional amount based on their length of service.

Data from the national employment social security agency show that 26.5 million formal workers could benefit. Analysts estimate total private-sector payouts may reach Rp4 trillion.

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Manpower Minister Yassierli said his ministry has instructed governors to enforce Government Regulation No. 36/2021 on wages. Regional administrations will also open complaint posts to respond to workers’ reports.

Beyond THR 2026, the government has allocated Rp220 billion in holiday bonuses for ride-hailing drivers and app-based couriers. The amount doubles last year’s figure.

Around 850,000 driver-partners are set to receive the bonus. Major platforms such as Gojek and Grab have each prepared about Rp100–110 billion. Meanwhile, Maxim and inDrive will distribute bonuses to tens of thousands of partners.

The policy obliges companies to grant at least 25 percent of a driver’s average monthly net income over the past 12 months. Firms must transfer the payment no later than seven days before Eid, although officials encourage earlier disbursement.

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Airlangga underlined that companies must not treat the bonus as a substitute for existing welfare benefits.

In parallel with THR 2026, the government has launched further programs to spur consumption. It has allocated Rp14.9 trillion for food aid, providing 10 kilograms of rice and two liters of cooking oil to five million families.

Authorities have also prepared Rp911.16 billion in transport discounts to reduce travel costs during the annual homecoming exodus. Moreover, the government will implement work-from-anywhere arrangements on selected dates in March 2026 to ease congestion.

Officials expect these combined measures to strengthen domestic demand and support faster growth in early 2026. “We expect public consumption to rise significantly and reinforce national economic growth,” Airlangga said.

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