Latest news with #BPJSKetenagakerjaan
The Star
03-06-2025
- Business
- The Star
Indonesia doubles wage subsidies, cancels electricity discount in stimulus shake-up
JAKARTA: In last-minute changes to a planned consumer stimulus package for June and July, the Indonesian government has cancelled an electricity discount but doubled wage subsidies. Finance Minister Sri Mulyani Indrawati (pic) revealed in a press conference on Monday (June 2) that the wage subsidies for low-income earners would double from Rp 150,000 (US$9) per month per individual to Rp 300,000. Eligible beneciaries include around 17.3 million workers earning up to Rp 3.5 million a month and some 565,000 'honorary teachers', a term commonly used for honorarium-based contract teachers. Sri Mulyani explained that the subsidies would ultimately be financed by BPJS Ketenagakerjaan but that the government would set aside Rp 10.72 trillion from the state coffers to 'temporarily' fund the programme. The wage subsidies are a part of a series of measures aimed at boosting consumer spending. When it was first announced last month, the package was to cover six areas, one being transportation discounts for trains, airplanes and ships, another area included discounts on road tolls for some 110 million eligible drivers. Two more areas were social aid for 18.3 million beneciaries and a discount on work accident insurance for employees in labour-intensive industries. When it was first announced last month, the package was to cover six areas, one being transportation discounts for trains, airplanes and ships, another area included discounts on road tolls for some 110 million eligible drivers. Two more areas were social aid for 18.3 million beneciaries and a discount on work accident insurance for employees in labour-intensive industries. The package originally also included a 50 per cent electricity discount for June and July, similar to what the government had granted in January and February. However, following a meeting at the State Palace and prior to June 2's press conference, Sri Mulyani announced that the discount was not doable. 'We have held a meeting with other ministers, and, for the implementation of the electricity discount, the budgeting process turned out to be a lot slower, so if we wanted it for June and July, we have determined that it could not be executed,' said Sri Mulyani. She explained the decision to double wage subsidies with the cancelled electricity discount. The Energy and Mineral Resources Ministry issued a press statement on June 2 saying it had not been involved in the formulation of the stimulus initiative helmed by Coordinating Economic Minister Airlangga Hartarto. '(The ministry) was never part of a team or any forum that talked about the electricity discount for June and July 2025,' said the ministry's spokesperson Dwi Anggia in the statement. Earlier, Energy and Mineral Resources Minister Bahlil Lahadalia said he was unaware of the initiative just days ahead of the implementation. 'I don't know whether there's already (a discussion) on the technical (level) or not; I don't know yet. One thing is for sure, I still haven't received the report until today,' Bahlil said on May 26, or 10 days before the policy's planned implementation. Such a policy should require 'communication' with the energy ministry and the Finance Ministry, Bahlil said, adding that he could only formally instruct state-owned electricity company PLN to execute it after that. Bahlil proceeded to verify the planned policy with PLN president director Darmawan Prasodjo, who happened to stand next to the minister. 'I'm sure PLN still hasn't received (any instruction). Have you received any letters from the energy ministry? You haven't, have you? Because, as far as I'm concerned, I must sign the letters and I haven't done that,' Bahlil said to Darmawan. 'Not yet,' the PLN director briey replied. In total, the consumer spending stimulus required some Rp 24.4 trillion, according to figures presented by Sri Mulyani. - The Jakarta Post/ANN
Straits Times
03-06-2025
- Business
- Straits Times
Indonesia doubles wage subsidies, cancels electricity discount in stimulus shake-up
Housing before the skyline of the Jakarta business district on May 9, 2025. PHOTO: AFP In last-minute changes to a planned consumer stimulus package for June and July, the Indonesian government has canceled an electricity discount but doubled wage subsidies. Finance Minister Sri Mulyani Indrawati revealed in a press conference on June 2 that the wage subsidies for low-income earners would double from Rp 150,000 (S$11.8) per month per individual to Rp 300,000. Eligible beneciaries include around 17.3 million workers earning up to Rp 3.5 million a month and some 565,000 'honorary teachers', a term commonly used for honorarium-based contract teachers. Ms Sri Mulyani explained that the subsidies would ultimately be nanced by BPJS Ketenagakerjaan but that the government would set aside Rp 10.72 trillion from the state coffers to 'temporarily' fund the program. The wage subsidies are a part of a series of measures aimed at boosting to consumer spending. When it was first announced last month, the packaged was to cover six areas, one being transportation discounts for trains, airplanes and ships, another area included discounts on road tolls for some 110 million eligible drivers. Two more areas were social aid for 18.3 million beneciaries and a discount on work accident insurance for employees in labour-intensive industries. When it was first announced last month, the packaged was to cover six areas, one being transportation discounts for trains, airplanes and ships, another area included discounts on road tolls for some 110 million eligible drivers. Two more areas were social aid for 18.3 million beneciaries and a discount on work accident insurance for employees in labor-intensive industries. The package originally also included a 50 per cent electricity discount for June and July, similar to what the government had granted in January and February. However, following a meeting at the State Palace and prior to June 2's press conference, Ms Sri Mulyani announced that the discount was not doable. 'We have held a meeting with other ministers, and, for the implementation of the electricity discount, the budgeting process turned out to be a lot slower, so if we wanted it for June and July, we have determined that it could not be executed,' said Ms Sri Mulyani. She explained the decision to double wage subsidies with the canceled electricity discount. The Energy and Mineral Resources Ministry issued a press statement on June 2 saying it had not been involved in the formulation of the stimulus initiative helmed by Coordinating Economic Minister Airlangga Hartarto. '(The ministry) was never part of a team or any forum that talked about the electricity discount for June and July 2025,' said the ministry's spokesperson Dwi Anggia in the statement. Earlier, Energy and Mineral Resources Minister Bahlil Lahadalia said he was unaware of the initiative just days ahead of the implementation. 'I don't know whether there's already (a discussion) on the technical (level) or not; I don't know yet. One thing is for sure, I still haven't received the report until today,' Mr Bahlil said on May 26, or 10 days before the policy's planned implementation. Such a policy should require 'communication' with the energy ministry and the Finance Ministry, Mr Bahlil said, adding that he could only formally instruct state-owned electricity company PLN to execute it after that. Bahlil proceeded to verify the planned policy with PLN president director Darmawan Prasodjo, who happened to stand next to the minister. 'I'm sure PLN still hasn't received (any instruction). Have you received any letters from the energy ministry? You haven't, have you? Because, as far as I'm concerned, I must sign the letters and I haven't done that,' Mr Bahlil said to Darmawan. 'Not yet,' the PLN director briey replied. In total, the consumer spending stimulus required some Rp 24.4 trillion, according to gures presented by Ms Sri Mulyani. THE JAKARTA POST/ASIA NEWS NETWORK Join ST's Telegram channel and get the latest breaking news delivered to you.
Zawya
11-04-2025
- Business
- Zawya
Indonesia's $48bln social security fund eyes doubling equities exposure
JAKARTA - Indonesia's $48 billion social security fund BPJS Ketenagakerjaan, the country's largest institutional investor, aims to raise the share of local equities in its portfolio to up to 20% within three years, a top official told Reuters on Friday. Asked about this week's local stock market tumble following the global turmoil caused by U.S. tariffs, Edwin Ridwan, the agency's director of investment development, said it had created room for the fund to invest in undervalued shares. The state-owned fund has been increasing its investment gradually in stocks with big market capitalisation, he said, in sectors such as banking, telecommunications, commodities and consumer goods. "These are the conditions where people are selling, if we look at history ... whenever the market overshoots, people are selling, it's the best time to buy," he said in an interview, referring to the financial crises of 1998 and 2008 and the COVID-19 pandemic. "The window has started to open up for us to increase our exposure to equities, because we need volume, we need liquidity, and with everybody selling, that liquidity is being provided." Edwin added that the fund was targeting a 13% year-on-year increase in returns in 2025. BPJS Ketenagakerjaan's current exposure to equities was at around 10% or equivalent to $4.8 billion, either directly in the stock market or through mutual funds, it said, adding that its target is to expand that to between 15% and 20% within three years. The largest portion is invested in bonds, and the rest is in deposits and other instruments. Indonesia's stock market tanked when it reopened on Tuesday after an extended holiday break, triggering a 30-minute trading halt in response to the global turmoil over U.S. President Donald Trump's tariffs announcement days earlier. The market has since regained some of its losses. President Prabowo Subianto is looking to increase the state's role in achieving its 8% growth target, including via the setting up of a new sovereign wealth fund managing more than $900 billion in assets as well as a state firm to run confiscated palm plantations. Since the global turmoil hit Indonesian markets, the country has also eased buyback rules for publicly listed companies, including state-run firms, and Bank Indonesia intervened "aggressively" to support a plummeting rupiah. Asked whether there was any order from the government for BPJS to support the falling stock market, Edwin said the agency was "quite independent." 'TOO BIG FOR THE MARKET' The agency has been trying for years to get government approval to invest in overseas financial markets, especially equity markets, Edwin said, citing its need to have more options for its large funds. "Basically we have a very limited we can't get in and out easily and we can't buy when other people buy," he said, referring to the risk of crowding out the market. The agency's assets under management have been expanding at a rate of 13% to 14% per year, and it makes up to 10 trillion rupiah ($595 million) per month in returns, Edwin said, explaining why it needs to find more investment instruments. Possible pressure on the rupiah has been one consideration against overseas investment, Edwin said, but he added that foreign exchange supply could be improved via return repatriation. ($1 = 16,790.0000 rupiah) (Reporting by Stefanno Sulaiman; Editing by Martin Petty, Gibran Peshimam and Hugh Lawson)
Reuters
11-04-2025
- Business
- Reuters
Indonesia's $48 billion social security fund eyes doubling equities exposure
JAKARTA, April 11 (Reuters) - Indonesia's $48 billion social security fund BPJS Ketenagakerjaan, the country's largest institutional investor, aims to boost the share of local equities in its portfolio to up to 20% within three years, with a recent market crash creating room to invest in undervalued shares, a top official told Reuters on Friday. Edwin Ridwan, the agency's director of investment development, said that since the Indonesian market slump, the state-owned fund has been increasing its investment gradually in stocks with big market capitalisation. "These are the conditions where people are selling, if we look at history ... whenever the market overshoots, people are selling, it's the best time to buy," he said in an interview, referring to financial crises of 1998 and 2008 and the COVID-19 pandemic. "The window has started to open up for us to increase our exposure to equities, because we need volume, we need liquidity, and with everybody selling, that liquidity is being provided." BPJS Ketenagakerjaan currently has about $4.8 billion of assets under its management directly in the stock market or through mutual funds, the company said. The largest portion is invested in bonds, and the rest in deposits and other instruments. Indonesia's stock market (.JKSE), opens new tab tanked when it reopened on Tuesday after an extended holiday break, triggering a 30-minute trading halt in response to global turmoil over steep U.S. trade tariffs announced days earlier. The market has since regained some of its losses. ($1 = 16,790.0000 rupiah)
