Can Indonesia’s third stimulus save its 5% growth goal?

[JAKARTA] Indonesia is preparing its third stimulus package this year in a bid to keep the economy growing near the 5 per cent mark, but with details under wraps and key subsidies to be excluded, economists are warning that the measures may be too modest to counter mounting domestic and global pressures.

Radhika Rao, senior economist at DBS, said: “The relatively narrower scope of stimulus support is likely to translate into a marginal impact on growth.

“While the extension of selected incentives may help demand, especially for lower-income households, the absence of wage subsidies and the persistent global uncertainty could keep growth below 5 per cent in the second half.”