Government to Roll Out Six Economic Incentives Starting June 5 to Boost Growth
Main Takeaways
|
JAKARTA, investortrust.id – The Indonesian government will launch six economic stimulus packages beginning Thursday, June 5, 2025, in a bid to accelerate growth in the second and third quarters. The move comes after Southeast Asia’s largest economy expanded by 4.87% year-on-year in the first quarter, slightly below the government's 2025 target.
Coordinating Minister for Economic Affairs Airlangga Hartarto said the incentives are being finalized by each relevant ministry and are designed to provide a short-term boost to consumption, mobility, and industrial activity.
“We are preparing six packages. Each ministry is currently finalizing the regulations,” said Airlangga during a press briefing in Jakarta on Friday, May 24.
Six Incentives to Be Rolled Out
The packages include both direct financial assistance and indirect stimulus through tariff relief:
| Policy | Description |
| 🛵 Electric Motorcycle Subsidy | Rp 7 million ($437) subsidy for buyers of electric two-wheelers, continuing the push for electrification and lower emissions. |
| 🥫 Food Assistance | Free staple food distribution for low-income families during June–July 2025, supporting household consumption. |
| 💵 Wage Subsidy (BSU) | A revival of pandemic-era wage subsidies to support purchasing power, especially for low-income workers. |
| 🚑 Workplace Accident Insurance Discount | Lower premiums for the Jaminan Kecelakaan Kerja (JKK) scheme to ease employer costs. |
| 🔌 Electricity Tariff Discount | Continued discounts for electricity bills, now limited to customers using under 1,300 VA, revised from the earlier 2,200 VA cap. |
| ✈️ Transport Discounts | VAT-exemptions on airline tickets and toll road fee discounts to boost holiday travel during school break. |
“The toll and airfare discounts are meant to support mobility during the school holiday period in Q2 and Q3,” Airlangga explained.
The government hopes the multi-pronged stimulus will inject momentum into economic activity through increased household spending and mobility, especially as global demand remains tepid and manufacturing shows mixed signals.
These new measures come amid President Prabowo Subianto’s broader push to keep economic growth above 5% in 2025, while maintaining price stability and supporting industrial transformation. The packages are also part of early fiscal intervention, signaling the administration's intent to counter potential slowdowns and maintain public confidence.