Gov’t Rolls out Economic Stimulus Packages to Maintain Economic Growth

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 2 Juni 2025
Category: News
Read: 223 Views

President Prabowo Subianto leads a limited meeting with a number of Red and White Cabinet ministers, at the Merdeka Palace, Jakarta, Monday (06/02). (Photo by: BPMI of Presidential Secretariat)

President Prabowo Subianto Monday (06/02) led a limited meeting with a number of Red and White Cabinet ministers, at the Merdeka Palace, Jakarta to discuss measures to counter the increasing risk of a national economic slowdown due to global pressures.

In that meeting, the Government officially rolled out an economic stimulus package worth Rp24.44 trillion to maintain and strengthen national economic growth and stability.

Minister of Finance Sri Mulyani Indrawati in a press statement said that President Prabowo has decided on five policies in that stimulus package, focusing on transportation sector, social assistance, wage subsidies, and toll road incentives.

“Today, the President decided to provide a stimulus package to maintain the economic growth and strengthen the economic stability,” she said.

The first package will cover discount for public transportation ticket fares during school holiday and the start of the new academic year in June–July this year. A 30-percent discount will apply for train ticket for 2.8 million passengers, with a budget allocation of Rp0.3 trillion. Meanwhile, VAT for economy class airline tickets will be borne by the Government at a rate of 6 percent, with a budget of Rp0.43 trillion, targeting around 6 million passengers. Ticket for sea transportation for 500,000 passengers will be half priced, with a budget of Rp0.21 trillion.

“The program will be effective in June and July with a budget for train tickets, economy class airline tickets, and sea transportation tickets amounting to Rp0.94 trillion,” she said adding that the Government will also provide a 20-percent discount for 110 million toll road users under a partnership with the Toll Road Business Entity (BUJT).

According to the Minister, toll road incentives will be carried out through non-state budget operations (non-APBN), as the Ministry of Public Works has issued or will issue a circular to BUJT regarding the toll discount policy.

In addition, the Government has also allocated a budget of Rp11.93 trillion to increase social assistance. An additional fund of Rp200,000 per month will be given for two months to 18.3 million beneficiaries of the Basic Food Card (Kartu Sembako) program. Moreover, they will receive 10 kg of free rice per month, totaling 20 kg over two months.

The other stimulus program is a wage subsidy assistance (BSU) of Rp300,000 per month for two months. It will be given to 17.3 million workers with income below Rp3.5 million or below the provincial/regency/city minimum wage, as well as to 565,000 non-tenured teachers from the Ministry of Primary and Secondary Education and the Ministry of Religious Affairs. The total budget allocated for BSU reaches Rp10.72 trillion.

The Government will also extend the period for 50-percent discount on occupational accident insurance (JKK) premium for 2.7 million workers in six labor-intensive industries.

“This aims at ensuring protection to workers in labor-intensive industries or those who are under pressure due to various global situations and export competition,” she explained.

In total, the budget allocated for all stimulus packages reaches Rp24.44 trillion, consisting of Rp23.59 trillion sourced from the state budget (APBN) and Rp0.85 trillion from non-APBN funds. In addition to the stimulus, the Government will disburse the 13th-month salary in June amounting to Rp49.3 trillion for civil servants, military personnel, police officers, and retirees.

“The stimulus and a number of measures taken to accelerate the Government programs such as free nutritious meals, housing, Red and White cooperatives, people’s schools programs, and reconstruction and rehabilitation of schools, using Rp16 trillion of budget, are expected to maintain economic growth in the second quarter close to 5 percent, despite earlier forecasts of a slowdown due to global conditions,” she remarked. (BPMI of Presidential Secretariat) (RAS/MUR)

Latest News