Latest news with #SriMulyani
The Star
3 days ago
- 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
3 days ago
- 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.
CNA
3 days ago
- Business
- CNA
Indonesia's economic incentives to cost US$1.5 billion, finance minister says
JAKARTA: Indonesia's economic policy package aimed at stimulating demand, which includes fare subsidies as well as cash and food handouts over June and July, will cost the government 24.44 trillion rupiah (US$1.5 billion), the finance minister said on Monday (Jun 2). State-owned companies will cover around 850 billion rupiah in costs for policies like subsidising highway toll fares, while the rest will come from the government's coffers, Sri Mulyani Indrawati said. The Indonesian government had announced last month on May 24 that it is rolling out a slew of stimulus measures to get its people to spend more in the next two months, with the finance minister providing further details on the costs on Monday. On May 27, the government announced discounts on electricity bills and transportation costs as well as cash and food handouts to selected households that will begin on Jun 5. With the upcoming school holidays set to take place between Jun 28 and Jul 12, it also revealed plans to boost domestic tourism and consumption by offering discounts on train tickets and sea transport services. "With these economic stimuli ... we hope economic growth in the second quarter can be kept close to 5 per cent, compared to our previous forecast of a slowdown due to global conditions," Sri Mulyani said on Monday. The Southeast Asia's largest economy grew 4.87 per cent on a yearly basis in the first quarter, its weakest pace in over three years and hit by falling household spending. The forecast for the rest of the year is also clouded by a troubling global trade outlook. Analysts told CNA earlier that the slew of measures may not be enough to revive sluggish domestic consumption and lift economic growth as broader moves are needed to help the country's middle class and protect businesses from the effects of higher United States tariffs. Sri Mulyani also said on Monday said the government had decided to cancel a plan to cut some electricity tariffs by as much as 50 per cent because the budgeting process would take too long.
Bloomberg
23-05-2025
- Business
- Bloomberg
Indonesia Picks New Tax, Customs Chiefs to Address Revenue Slump
Indonesia appointed new heads for its tax and customs offices amid a sharp decline in revenue collections. Bimo Wijayanto was named director general of taxation, replacing Suryo Utomo, Finance Minister Sri Mulyani Indrawati said in a ceremony on Friday. Wijayanto was previously a deputy secretary at the Coordinating Ministry for Economic Affairs and a senior analyst at the tax office.
Reuters
23-05-2025
- Politics
- Reuters
Indonesia appoints former military officer as head of customs and excise
JAKARTA, May 23 (Reuters) - Indonesian Finance Minister Sri Mulyani Indrawati on Friday appointed retired Lieutenant General Djaka Budhi Utama, a former military officer who was once found guilty of kidnapping rights activists, as the head of the country's customs and excise unit. Sri Mulyani also appointed Bimo Wijayanto, a civil servant who was previously posted to the tax office, investment ministry and president's chief of staff, as the new head of the tax office. Human rights activists had raised concerns about Utama's appointment, in part because before Friday's ceremony he was still thought to be an active military officer. Under Indonesian law, military personnel are barred from holding some civilian posts, including in the Finance Ministry. However, during the inauguration ceremony, a presentation detailing his profile referred to Utama as a retired Lieutenant General. Having retired from the military, he would be eligible to hold the post.
