Indonesia to launch stimulus measures to boost spending
JAKARTA : Indonesia plans to announce economic stimulus measures on June 5 to revive activity and boost consumer purchasing power, hoping to push economic growth to around 5% this quarter, the coordinating ministry of economic affairs said on Saturday.
'These programmes are prepared to encourage growth by increasing consumption,' chief economic minister Airlangga Hartarto said in a statement, adding that launching the measures before a school holiday starting in late June would provide momentum to boost purchasing power.
Southeast Asia's largest economy grew 4.87% 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% and 5.4% from a 4.7%-5.5% range.
The ministry is still calculating the size of the stimulus package, which is meant to boost growth in the second and third quarters, a spokesperson said.
The incentives include a 50% discount on electricity bills for around 79.3 million households and food handouts for 18.3 million lower-income households in June and July.
The government also plans to give cash transfer for low-income workers and a discount on work accident insurance for workers in labour-intensive industries.
To boost tourism, the government said there will be discounts on airfare, train and sea transportation rates during the school holiday, which runs through mid-July, and discounts on highway tolls for 110 million users in June and July, the ministry said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malay Mail
10 hours ago
- Malay Mail
Known as China's logistics capital, Linyi has become a development hotspot of the private economy, said the Linyi City Government
LINYI, CHINA - Media OutReach Newswire - 20 August 2025 - Known as China's logistics capital, Linyi has become a development hotspot of the private economy. By the end of June, the city had cultivated over 1.54 million market entities, ranking second in Shandong province, according to statistics from the Linyi Municipal them, there were more than 1.53 million private market entities, accounting for 99.3 percent of the total, contributing over 90 percent of the city's business revenue, industrial tax revenue, and employment for residents. Private investment accounted for 75.9 percent, ranking third in the province, surpassing the provincial average by 14.3 percentage a major gathering for entrepreneurs from across China and abroad, the 2nd Linyi Entrepreneurs Convention was held in Linyi from Aug 18 to 20, with the tagline "choose Shandong, gather in Linyi for win-win future", showcasing the city's vibrant private economy and development potential to the an unprecedented scale, the event featured the release of Shandong top 100 private enterprises list. There were more than 900 attendees including representatives from local enterprises, leading figures of private enterprises, and renowned experts and scholars, gathering in Linyi to express their deep feelings for their hometown and discuss major development plans. It also highlighted new policies to support private businesses, offering both financial incentives and comprehensive is an important birthplace of Dongyi culture, an important part of Shandong culture, with the phoenix serving as its symbolic totem. The event introduced the Phoenix List to recognize and motivate local enterprises, symbolizing advancement and cultural event launched site visits to Linyi's 13 iconic industry value chains, ranging from food processing and modern medicine to agricultural machinery and high-end equipment. Activities like the "Linyi enterprise experience tour" and six matchmaking conferences were organized to foster collaboration along key industry value chains, aiming to boost investment, attract talent, and drive high-quality development in the private economy is the foundation of its development, and its entrepreneurs are the backbone of its growth. The Linyi Entrepreneurs Convention serves as a key platform for private business leaders to exchange ideas and innovate. Starting next year, Linyi will make the conference an annual event, aiming to create a distinctive symbol for the city's private sector, a shared celebration for its entrepreneurs, and a prestigious brand for the #Linyi The issuer is solely responsible for the content of this announcement. About The Linyi Municipal Publicity Department The Linyi Municipal Publicity Department is a key division within the Linyi Municipal Government, dedicated to advancing cultural development and fostering the construction of a spiritual civilization.
Free Malaysia Today
10 hours ago
- Free Malaysia Today
Indonesia's central bank announces surprise rate cut
Bank Indonesia had projected at the start of the year that economic growth would be slower in 2025. (Reuters pic) JAKARTA : Indonesia's central bank unexpectedly announced a cut in its key interest rate today in a bid to boost economic growth just days after President Prabowo Subianto touted an expectation-defying economy. Bank Indonesia lowered the benchmark seven-day reverse repurchase rate by 25 basis points to 5%, citing a need to bolster stability and growth. 'This decision is consistent with the continued low inflation forecast for 2025 and 2026… the maintained stability of the rupiah, and the need to promote economic growth in line with the economy's capacity,' said Bank Indonesia governor Perry Warjiyo. 'The low inflation will give room for more interest rate cuts,' he said. It was the fifth cut since September, despite economist predictions the central bank would hold this time around, and the lowest rate since late 2022. It comes after Indonesia recorded positive second quarter (Q2) economic results of more than 5% growth after Prabowo's government set an ambitious goal of 8% when he took office last year. He lauded the figure in his first state of the nation speech last week. Bank Indonesia had projected at the start of the year that economic growth would be slower in 2025 compared to last year. London-based business research centre, Capital Economics, called the move a surprise but said more rate cuts could be expected. 'With inflation subdued and GDP growth likely to slow, we think there's scope for more easing over the rest of this year,' wrote Capital Economics' Jason Tuvey in a note. 'We now expect rates to be lowered to 4.50% by year-end,' Tuvey added.
Malay Mail
12 hours ago
- Malay Mail
Indonesia central bank surprises markets with 5pc rate cut to spur growth
JAKARTA, Aug 20 — Indonesia's central bank unexpectedly announced a cut in its key interest rate on Wednesday in a bid to boost economic growth just days after President Prabowo Subianto touted an expectation-defying economy. Bank Indonesia lowered the benchmark seven-day reverse repurchase rate by 25 basis points to 5 per cent, citing a need to bolster stability and growth. 'This decision is consistent with the continued low inflation forecast for 2025 and 2026... the maintained stability of the rupiah, and the need to promote economic growth in line with the economy's capacity,' said Bank Indonesia governor Perry Warjiyo. 'The low inflation will give room for more interest rate cuts.' It was the fifth cut since September, despite economist predictions the central bank would hold this time around, and the lowest rate since late 2022. It comes after Indonesia recorded positive second-quarter economic results of more than five per cent growth after Prabowo's government set an ambitious goal of eight per cent when he took office last year. He lauded the figure in his first state of the nation speech last week. Bank Indonesia had projected at the start of the year that economic growth would be slower in 2025 compared to last year. London-based business research centre, Capital Economics, called the move a surprise but said more rate cuts could be expected. 'With inflation subdued and GDP growth likely to slow, we think there's scope for more easing over the rest of this year,' wrote Capital Economics' Jason Tuvey in a note. 'We now expect rates to be lowered to 4.50 per cent by year-end.' — AFP
