Govt to extend economic stimulus into second half

id economic stimulus,coordinating minister for economic affairs,subsidy

Govt to extend economic stimulus into second half

Passengers walk toward the Tawang Jaya Premium train car at Semarang Tawang Station in Semarang, Central Java, Sunday (July 20, 2025). As of July 18, 2025, PT Kereta Api Indonesia (Persero) reported that 3,003,636 tickets had been sold out of a total of 3,529,612 discounted seats offered under a 30 percent promotional program for commercial economy-class trains. The program is part of the government's efforts to stimulate public mobility through the use of public transportation. ANTARA FOTO/Aprillio Akbar/sgd

Jakarta (ANTARA) - Coordinating Minister for Economic Affairs, Airlangga Hartarto, has confirmed that the economic stimulus package will be extended to boost economic growth in the second half of this year.Details of the package will be released in September 2025, he said at his office here on Friday.

Like previous measures, the package will include discounts on plane, ferry, and train ticket fares, as well as toll tariffs. It will be offered from December 2025 to January 2026 to stimulate public consumption during the year-end holiday, he informed.

However, there will be no electricity discounts or wage subsidy aid (BSU) this time round, he added.

According to the minister, the government will continue the 100-percent Value Added Tax Borne by the Government (PPN DTP) incentive for the property sector.

Initially, the plan was to reduce the incentive to 50 percent, but following an agreement, the figure was left unchanged at 100 percent, Hartarto informed.

Earlier, the government rolled out five economic stimulus packages worth Rp24.44 trillion (US$1.53 billion) for the second quarter of 2025 to maintain people’s purchasing power during the school holiday season.

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The stimulus included transportation subsidies, toll discounts, social aid, wage subsidy, and labor sector incentives.

The transportation discounts included 30 percent off train tickets, six percent off VAT for plane tickets, and 50 percent off ferry tickets. Toll tariffs were cut by 20 percent to encourage domestic travel.

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The government distributed Rp11.93 trillion (US$745 million) in social aid through additional benefits under the basic food card (Kartu Sembako) program and the distribution of 10kg of rice to 18.3 million beneficiary families (KPM).

The package also provided Rp300 thousand (US$19) in wage subsidy assistance (BSU) for approximately 17.3 million workers earning less than Rp5 million (around US$313) per month, including teachers.

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Editor: I Komang Suparta
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