Indonesian Government Unveils Rp24 T Economic Stimulus Package

Economics & Macro

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Nabilah Muhamad 04/06/2025 10:33 WIB

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The government will provide five economic stimulus packages totaling Rp24.44 trillion during June-July 2025. This assistance includes increased social assistance, wage subsidies, and transportation di

Budget Allocation of Indonesia's Economic Stimulus Package (June-July 2025)

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Indonesian Government Unveils Rp24 T Economic Stimulus Package

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Budget Allocation of Indonesia's Economic Stimulus Package (June-July 2025)

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The Indonesian government will implement five economic stimulus packages totaling Rp24.44 trillion (approximately US$1.6 billion based on June 2025 exchange rates) between June and July 2025. Funding will come from the state budget (APBN) amounting to Rp23.59 trillion and non-APBN sources of Rp0.85 trillion.

"President @prabowo has provided 5 stimulus packages to boost economic activity and equitable welfare for the people," wrote Finance Minister Sri Mulyani on her official Instagram account on Tuesday, June 3, 2025.

The largest portion of the economic stimulus package, Rp11.93 trillion, is allocated to bolstering social assistance (bansos) and food aid.

This assistance includes a Rp200,000 monthly increase to the Sembako Card (food staple card) and 10 kg of rice per month. This will be provided to 18.3 million beneficiary families (KPM) in a single disbursement in June.

Next is a wage subsidy (BSU) with a budget of Rp10.72 trillion. The BSU will provide Rp300,000 to 17.3 million workers/laborers with a maximum salary of Rp3.5 million or equivalent to the regional minimum wage (UMP); 288,000 teachers from the Ministry of Education, Culture, Research, and Technology (Kemendikbudristek); and 277,000 teachers from the Ministry of Religious Affairs (Kemenag) for the June-July 2025 period.

Furthermore, there is a transportation discount of Rp0.94 trillion during the school holidays (June-July 2025). Discounts include a 30% discount on train tickets, a 6% discount on plane tickets (Value Added Tax reduction), and a 50% discount on other transportation.

A toll tariff discount of Rp0.65 trillion will also be implemented. A 20% discount will be given to 110 million drivers during the school holidays.

Finally, there is an extension of the Work Accident Insurance (JKK) premium discount with a total budget of Rp0.2 trillion. A 50% discount will be given for six months to workers in labor-intensive sectors.

"Hopefully, these five stimulus packages will run smoothly and have a significant positive impact on the national economy," wrote Sri Mulyani.

(Read: Mass Layoffs Lead to Surge in Unemployment Benefit Claims)

Editor : Erlina Fury Santika

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."