JAKARTA, Indonesia. The Indonesian government on Monday announced a new economic stimulus package worth 16.23 trillion rupiah ($989 million), aimed at boosting growth and creating jobs through food assistance, infrastructure projects, and tax relief measures.
Coordinating Minister for Economic Affairs Airlangga Hartarto said the package will take effect in the fourth quarter of 2025, with some measures extended to 2026. He expressed confidence that the program would help sustain the country’s momentum after recording a 5.12% annual growth rate in the second quarter, Indonesia’s strongest in two years.
“With this stimulus package, we hope we could still reach the 5.2% economic growth target this year,” Hartarto told reporters after a meeting with President Prabowo Subianto.
Key measures include distributing 10 kilograms of rice to 18.3 million households in the last quarter of 2025, removing personal income tax for tourism workers, and allocating 5.3 trillion rupiah for a “cash for work” scheme expected to provide temporary employment to more than 600,000 people between September and December. The program will engage rural workers in infrastructure projects such as road and bridge construction.
The package also features a paid internship program for 20,000 university graduates and a 50% discount on policy payments for state-provided work injury insurance covering ride-hailing motorcycle drivers and truck drivers. Both the tax exemption for select sectors and the insurance subsidies will remain in place until 2026.
Meanwhile, the government decided to delay a planned increase in income tax on small businesses, keeping the current rate of 0.5% of turnover until 2029 instead of raising it to 1% next year.
Looking ahead, Jakarta will launch a replanting initiative in 2026 covering 870,000 hectares of plantations for commodities such as sugar cane, cocoa, coffee, cashew, nutmeg, and coconut. The program is projected to create 1.6 million jobs. Airlangga also announced discounted airfares for year-end holiday travel, though details were not provided.
Finance Minister Purbaya Yudhi Sadewa said the stimulus measures will not affect the 2025 budget deficit forecast of 2.78% of GDP.
Housing Minister Maruarar Sirait added that the government, through state banks, will disburse 130 trillion rupiah in construction loans to select property developers and small businesses to expand their stores. The state will subsidize 5% of the annual interest costs on the loans, part of efforts by the Prabowo administration to deliver three million affordable homes annually while generating more jobs.
Si Venus L Peñaflor ay naging editor-in-chief ng Newsworld, isang lokal na pahayagan ng Laguna. Publisher din siya ng Daystar Gazette at Tutubi News Magazine. Siya ay isa ring pintor at doll face designer ng Ninay Dolls, ang unang Manikang Pilipino. Kasali siya sa DesignCrowd sa rank na #305 sa 640,000 graphic designers sa buong daigdig. Kasama din siya sa unang Local TV Broadcast sa Laguna na Beyond Manila. Aktibong kasapi siya ng San Pablo Jaycees Senate bilang isang JCI Senator.
- Venus L Peñaflor
- Venus L Peñaflor
- Venus L Peñaflor
- Venus L Peñaflor
