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Indonesia to launch economic stimulus to boost consumption
ByAinvest
Saturday, May 24, 2025 12:26 am ET1min read
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.
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. The Southeast Asian nation aims to bolster its economy, which grew at a slower pace of 4.87% in the first quarter compared to the same period last year [1].The stimulus package, which is expected to be announced once regulations in each ministry are finalized, includes several incentives such as a 50% discount on electricity bills for some customers, food handouts for June and July, and discounts on work accident insurance and highway tolls. Additionally, there will be a 7-million-rupiah ($430) subsidy for electric motorcycle purchases and tax breaks for airfare and cash transfers for low-income workers [1].
The chief economic minister, Airlangga Hartarto, stated that the government is preparing six packages to support the economy. The spokesperson for the Coordinating Ministry of Economic Affairs did not respond to queries on the size of the stimulus [1].
Indonesia is also reviving talks with Boeing Co. over a long-delayed aircraft cooperation deal with state-owned flag carrier Garuda Indonesia. The talks come amid broader trade negotiations between Jakarta and Washington, where Indonesia is seeking tariff relief following US President Donald Trump’s April 2 decision to impose a 32 percent tariff on Indonesian exports [2].
These developments suggest that Indonesia is taking proactive measures to stimulate economic growth and improve consumer purchasing power, while also addressing trade tensions with the United States. The success of these initiatives will be closely watched by investors and financial professionals.
References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3RW00L:0-indonesia-to-launch-economic-stimulus-to-boost-consumption/
[2] https://jakartaglobe.id/business/indonesia-revives-boeinggaruda-deal-amid-tariff-talks
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