Jakarta. The government is finalizing a new wage subsidy program that will provide Rp 150,000 ($9.23) per month to workers earning less than Rp 3.5 million, including non-permanent (honorary) teachers. The scheme is part of a broader economic stimulus package set for rollout in the second quarter of 2025.

Chief Economic Affairs Minister Airlangga Hartarto said on Monday that the proposal is still under discussion with relevant ministries and is scheduled to take effect on June 5.

“The direct wage subsidy assistance will be coordinated with the Manpower Ministry. The amount will be around Rp 150,000 per month,” Airlangga said.

The subsidy will be distributed over a two-month period to help sustain public purchasing power amid global economic headwinds and in anticipation of increased household spending during the school holiday season.

The program was previously discussed during the National Coordination Meeting on May 23. It is part of a wider stimulus plan, known as the Incentive Package, which also includes electricity tariff discounts, food aid, airline ticket subsidies, and other social protection programs.

Airlangga added that all aid measures will be formalized through a Finance Minister Regulation or regulations issued by the Ministry of Social Affairs.

The food assistance component will be coordinated with the Coordinating Minister for Food Affairs and the National Development Planning Ministry (Bappenas), while electricity-related subsidies will involve the Energy and Mineral Resources Ministry.

The government is set to reintroduce electricity bill discounts for low-power households starting June 5. In the first two months of 2025, the government allocated Rp 13.6 trillion to provide a 50 percent discount on electricity bills for PLN customers with power usage ranging from 450 VA to 2,200 VA. The subsidies benefited around 81.4 million customers, including 24.6 million with 450 VA, 38 million with 900 VA, 14.1 million with 1,300 VA, and 4.6 million with 2,200 VA.

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