Indonesia to launch economic stimulus to boost consumption
JAKARTA, May 24 (Reuters) - Indonesia plans to announce economic stimulus measures on June 5 to boost economic activity and consumer purchasing power this quarter, a government spokesperson said on Saturday.
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 incentives include a 50% discount on electricity bills for some customers, food handouts for June and July, a discount on work accident insurance, a 7-million-rupiah ($430) 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."
($1 = 16,215.0000 rupiah)
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