(Jakarta, 28th) The Indonesian government is preparing economic stimulus measures for the second half of this year, with an estimated allocation of 7.8 trillion rupiah (about RM1.74 billion), mainly for transportation subsidies during the year-end school holidays, Christmas, and New Year holidays, to stimulate domestic consumption and travel.
According to The Jakarta Post, Indonesia's Coordinating Minister for Economic Affairs, Airlangga, revealed on Tuesday (May 26) that the economic incentive plan under preparation is focused on targeted incentives to boost household consumption, support employment, and enhance purchasing power.
Indonesia's economic growth rate accelerated from 5.39% in the fourth quarter of last year to 5.61% in the first quarter of this year. The government hopes to maintain this robust growth momentum by launching new economic stimulus measures.
Airlangga pointed out that to stimulate domestic travel and consumption, the government has prepared transportation subsidies of 190 billion rupiah for the school holidays, expected to benefit more than three million people; another 161.4 billion rupiah will be allocated for Christmas and the 2027 New Year holiday transportation subsidies to encourage people to travel, expected to benefit 2.87 million people.
The Indonesian government will continue the ticket tax discount measures introduced during the Eid al-Fitr period. This means that during the year-end holidays, if people travel by air, economy class passengers may continue to enjoy a 30% discount on tickets, as the government will cover the value-added tax for economy class airfares. The budget for this subsidy program is 472.7 billion rupiah, expected to benefit 2.3 million passengers.
In addition to consumption-oriented incentives, the Indonesian government also plans to expand labor and vocational training programs to alleviate concerns over layoffs and the global demand slowdown, as well as to improve people’s employability.
Among them, Indonesia’s fourth batch of National Internship Program will be launched in July, targeting 150,000 people, with a budget allocation of 4.14 trillion rupiah.
Indonesia's economic growth rate accelerated from 5.39% in the fourth quarter of last year to 5.61% in the first quarter of this year. The government hopes to maintain this robust growth momentum by launching new economic stimulus measures.
Airlangga pointed out that to stimulate domestic travel and consumption, the government has prepared transportation subsidies of 190 billion rupiah for the school holidays, expected to benefit more than three million people; another 161.4 billion rupiah will be allocated for Christmas and the 2027 New Year holiday transportation subsidies to encourage people to travel, expected to benefit 2.87 million people.
The Indonesian government will continue the ticket tax discount measures introduced during the Eid al-Fitr period. This means that during the year-end holidays, if people travel by air, economy class passengers may continue to enjoy a 30% discount on tickets, as the government will cover the value-added tax for economy class airfares. The budget for this subsidy program is 472.7 billion rupiah, expected to benefit 2.3 million passengers.
In addition to consumption-oriented incentives, the Indonesian government also plans to expand labor and vocational training programs to alleviate concerns over layoffs and the global demand slowdown, as well as to improve people’s employability.
Among them, Indonesia’s fourth batch of National Internship Program will be launched in July, targeting 150,000 people, with a budget allocation of 4.14 trillion rupiah.