Indonesia to launch economic stimulus to boost consumption

[JAKARTA] Indonesia plans to announce economic stimulus measures on Jun 5 to boost economic activity and consumer purchasing power this quarter, a government spokesperson said on Saturday (May 24).

South-east Asia’s largest economy grew 4.87 per cent in the first quarter from the same period last year, its weakest in more than three years. The central bank trimmed its 2025 growth forecast to between 4.6 per cent and 5.4 per cent from a 4.7 to 5.5 per cent range.

The incentives include a 50 per cent discount on electricity bills for some customers, food handouts for June and July, a discount on work accident insurance, a seven million rupiah (S$555) subsidy for electric motorcycle purchases, discounts on highway tolls and tax breaks for airfare and cash transfer for low income workers, chief economic minister Airlangga Hartarto said on Friday, according to CNBC Indonesia.

The spokesperson for the Coordinating Ministry of Economic Affairs did not respond to a query on the size of the stimulus.

“We are preparing six packages. At the moment, each ministry is preparing the regulations,” Chief Economic Minister Airlangga Hartarto said. “Hopefully this can be announced soon once regulations in each ministry are completed.” REUTERS