Indonesia Unveils Rp24 Trillion Economic Stimulus Package

TEMPO.CO, Jakarta - Indonesian President Prabowo Subianto has rolled out an economic stimulus package worth Rp24.44 trillion to maintain growth and strengthen the national economic stability.

This decision on the stimulus package was announced after a limited meeting with several members of the Red and White Cabinet Ministers at the Merdeka Palace, Jakarta, on Monday, June 2, 2025. The goal is to address the growing risk of economic weakness at the national level due to global pressures.

Finance Minister Sri Mulyani Indrawati explained that President Prabowo has decided on five policy groups within the stimulus package, with the main targets being the transportation sector, social assistance, wage subsidies, and toll incentives.

"Today, the President has also decided to provide a stimulus package to maintain economic growth momentum and to continuously strengthen economic stability," said Sri Mulyani at the Presidential Palace, Jakarta, June 2, 2025.

The first package includes a discount program for transportation modes during the school holiday and the beginning of the new academic year in June-July 2025. A 30 percent discount for train tickets is provided for 2.8 million passengers with a budget allocation of Rp300 billion. Meanwhile, economy class airplane tickets will be subject to a 6 percent government-subsidized VAT scheme with a budget of Rp430 billion, targeting around 6 million passengers.

Sea transport will also receive a 50 percent price reduction. This reduction targets half a million passengers with a budget of Rp210 billion. "All of this will be carried out in June and July, with the total budget for train tickets, economy class airplane tickets, and sea transport tickets amounting to Rp940 billion," explained the Minister of Finance.

In addition, a 20 percent discount will be given on toll road tariffs for 110 million users during the same period. This discount will be implemented through cooperation with the Toll Road Business Entity (BUJT).

"This will be carried out through non-state budget operations, because in this case, the Public Works Ministry has issued or already issued a circular to BUJT regarding the toll tariff discount policy," said Sri Mulyani.

The government has allocated an additional Rp11.93 trillion to reinforce social assistance. An additional Rp200,000 per month will be given to 18.3 million Staple Food Card program recipients for two months. Furthermore, they will receive 10 kg of free rice per month, totaling 20 kg for two months.

The next stimulus package is wage subsidy assistance (BSU), providing Rp300,000 monthly for two months. This BSU is given to 17.3 million workers earning less than Rp3.5 million or below the provincial/district/city minimum wage, as well as to 565 thousand honorary teachers from the Ministry of Education and Culture and the Ministry of Religious Affairs. The total budget for this BSU amounts to Rp10.72 trillion.

The government has also extended the 50 percent discount on work accident insurance premiums for 2.7 million workers in six labor-intensive industries.

"This is intended for workers in labor-intensive industries who are under pressure due to various global situations and export competition, so they can still receive job loss guarantees with only 50 percent of the premium paid," she said.

Overall, the value of the stimulus package reaches Rp24.44 trillion, consisting of Rp23.59 trillion from the state budget and Rp0.85 trillion from non-state budget sources. This stimulus is also complemented by the disbursement of the 13th-month salary in June, amounting to Rp49.3 trillion for civil servants, the military, the police, and retirees.

Sri Mulyani hopes that this stimulus, together with government programs, such as free nutritious meals, housing, the Red and White Cooperative, public schools, and school improvements amounting to Rp16 trillion, can maintain economic growth.

"We hope that in the second quarter, economic growth can still be maintained close to 5 percent from the previously estimated weakening due to global conditions," said Sri Mulyani.

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