FX.co ★ Indonesia to Launch Economic Stimulus to Boost Consumption

Indonesia is set to unveil a series of economic stimulus measures on June 5, aiming to invigorate economic activity and enhance purchasing power, with the goal of elevating GDP growth to approximately 5% for the current quarter. These measures, planned for release before the commencement of the school holidays in late June, are designed to boost household spending, according to a statement from the Coordinating Ministry of Economic Affairs on Saturday. The principal initiatives include a 50% reduction in electricity bills for nearly 79.3 million households, as well as food assistance for around 18.3 million low-income households for the months of June and July. Additionally, the government intends to provide cash transfers to workers with low incomes and offer a discount on work accident insurance for employees in labor-intensive sectors. To further bolster the tourism industry, officials have announced anticipated discounts on airfares, train tickets, and sea transportation during the school holiday period, alongside reduced toll rates on highways in June and July. In the first quarter of 2025, Indonesia's GDP posted a year-on-year growth of 4.87%, marking the slowest expansion rate since the third quarter of 2021.