Prabowo Launchess $1.5 Billion Economic Stimulus to Support Growth in June–July
Key Takeaways
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JAKARTA, Investortrust.id – President Prabowo Subianto has launched a Rp 24.44 trillion ($1.53 billion) economic stimulus package for June and July 2025, aimed at protecting Indonesia’s growth trajectory and economic stability amid global headwinds.
The package, announced after a cabinet meeting at the Merdeka Palace on Monday, focuses on five core measures, including transportation discounts, wage subsidies, social aid, and toll incentives. According to Finance Minister Sri Mulyani Indrawati, the stimulus is designed to mitigate the impact of weakening external demand and ensure momentum heading into the second half of the year.
“President Prabowo has decided to roll out this stimulus package to safeguard growth momentum and reinforce economic stability,” said Sri Mulyani.
Transportation Discounts for School Holidays
The first part of the stimulus includes travel subsidies during school holidays and the start of the academic year. The government will allocate Rp 940 billion ($59 million) to fund: a 30% discount on railway tickets for 2.8 million passengers, a 6% value-added tax subsidy on economy-class airline tickets, benefiting 6 million travelers, and a a 50% fare reduction for sea transport covering 500,000 passengers.
In addition, toll road users will receive a 20% discount throughout the June–July period. This incentive will be delivered through cooperation with private toll road operators and funded outside the state budget.
Expanded Social Assistance
To strengthen household purchasing power, the government is allocating Rp 11.93 trillion ($746 million) to expand social protection programs. These enclude a Rp 200,000 ($12.50) monthly top-up in food assistance for 18.3 million beneficiaries under the basic food card program, disbursed over two months and an additional 10 kg of free rice each month, for a total of 20 kg over the two-month period.
Wage Subsidies for Low-Income Workers
The fourth measure includes Rp 10.72 trillion ($670 million) in wage subsidies: Rp 300,000 ($19) per month for two months for 17.3 million workers earning less than Rp 3.5 million ($220) or below their region’s minimum wage.
The same subsidy for 565,000 contract teachers at the Ministry of Religious Affairs and the Ministry of Education.
The government will also extend a 50% discount on work accident insurance (JKK) premiums for 2.7 million workers in six labor-intensive industries.
“This ensures continued protection for workers in export-dependent sectors that are under pressure from global market shifts,” said Sri Mulyani.
Budget Breakdown and Broader Support
Of the Rp 24.44 trillion stimulus, Rp 23.59 trillion will come from the national budget (APBN), while Rp 850 billion will be sourced from outside the APBN, mainly via toll operator cooperation.
The stimulus complements other government disbursements this month, including Rp 49.3 trillion in 13th-month salary payments for civil servants, military and police personnel, and retirees.
The administration also seeks to accelerate key flagship programs, including free nutritious meals for students, subsidized housing, village cooperatives (Koperasi Merah Putih), the Sekolah Rakyat program, and a Rp 16 trillion allocation for school reconstruction and rehabilitation.
“With these combined efforts, we hope to sustain second-quarter growth close to 5%, despite mounting global challenges,” said Sri Mulyani.