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Indonesia Rolls Out Economic Stimulus Programs for School Holiday Season

Arnoldus Kristianus
May 27, 2025 | 2:44 pm
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Lebaran Return Flow 2025 at Cikampek Utama Toll Gate (Cikatama), West Java, Sunday (April 6, 2025). (Beritasatu.com/Teguh Adi Prasetyo)
Lebaran Return Flow 2025 at Cikampek Utama Toll Gate (Cikatama), West Java, Sunday (April 6, 2025). (Beritasatu.com/Teguh Adi Prasetyo)

Jakarta. The government is launching a series of economic stimulus programs to coincide with the June–July 2025 school holiday period, aiming to support economic growth, boost consumer spending, and maintain purchasing power.

Coordinating Economic Ministry Secretary Susiwijono Moegiarso said the second-quarter stimulus measures were finalized during a ministerial coordination meeting on May 23. 

“All the stimulus programs will be implemented starting June 5,” Susiwijono said in a statement on Tuesday.

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The initiatives, designed to sustain Q2 GDP growth at around 5 percent, include transport discounts, electricity bill relief, food assistance, wage subsidies, and social protection expansions. Below is a breakdown of the stimulus measures:

1. Transport Discounts

  • Train tickets: 30 percent discount

  • Airfare: 6 percent VAT is covered by the government

  • Sea transport: 50 percent discount
    These discounts will be available for two months, from early June to mid-July, and are coordinated by the Transportation Ministry, Finance Ministry, and State-Owned Enterprises Ministry.

2. Toll Fee Discounts

  • A 20 percent toll discount will be applied for approximately 110 million drivers during the same holiday period. The program follows a similar model to discounts during Eid and Christmas–New Year periods, coordinated by the Public Works and Housing Ministry and the Transportation Ministry.

3. Electricity Tariff Subsidies

  • A 50 percent electricity discount for around 79.3 million households with power usage up to 1,300 VA.

  • The subsidy runs from June 5 to July 31, following a similar model used in January–February 2025. It is implemented by the Energy and Mineral Resources Ministry, Finance Ministry, and PLN.

4. Food and Social Assistance

  • Additional Rp 200,000 ($12.3) per month in staple food assistance for 18.3 million beneficiary families (KPM) for two months.

  • 10 kg of rice per month for each of the same KPM recipients.

  • Coordinated by the Social Affairs Ministry and National Food Agency in partnership with the Agriculture Ministry and state logistics firm Bulog.

5. Wage Subsidy Assistance (BSU)

  • Rp 150,000 per month for two months (June–July) to about 17 million workers earning up to Rp 3.5 million, including 3.4 million honorary teachers.

  • The subsidy will be paid out in a single disbursement in June.

  • Managed by the Finance Ministry, Manpower Ministry, and state insurer BPJS Ketenagakerjaan, along with the Education and Religious Affairs ministries for the teacher component.

6. Extension of Work Accident Insurance (JKK) Premium Discounts

  • A 50 percent premium discount will be extended for six months (August 2025–January 2026) for workers in labor-intensive sectors.

  • Coordinated by the Manpower Ministry and BPJS Ketenagakerjaan.

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