Indonesia to launch economic stimulus to boost consumption

24/5/2025 16:45

Indonesia plans to announce economic stimulus measures on June 5 to revive activity and boost consumer purchasing power, hoping to push economic growth to around 5% this quarter, the Coordinating Ministry of Economic Affairs said on Saturday.



"These programmes are prepared to encourage growth by increasing consumption," chief economic minister Airlangga Hartarto said in a statement, adding that launching the measures before a school holiday starting in late June would provide momentum to boost purchasing power.



Southeast Asia's largest economy grew 4.87% in the first quarter from the same period last year, its weakest in more than three years. The central bank trimmed its 2025 growth forecast to between 4.6% and 5.4% from a 4.7%-5.5% range.



The ministry is still calculating the size of the stimulus package, which is meant to boost growth in the second and third quarters, a spokesperson said.



The incentives include a 50% discount on electricity bills for around 79.3 million households and food handouts for 18.3 million lower-income households in June and July.