Doubled wage subsidies implemented, electricity discount abolished in Indonesia's stimulus package revision
Jakarta Shakes Up Consumer Stimulus in June and July
Yo, listen up! The Jakarta government has made some unexpected changes to their consumer stimulus plan this June and July. They've axed the electricity discount but have doubled the wage subsidies instead!
The Finance Minister, Sri Mulyani Indrawati, made a big announcement at a press conference that wage subsidies for the low-income earners would be increased from Rp 150,000 (US$9) per month per individual to a whopping Rp 300,000. That's good news for roughly 17.3 million workers earning up to Rp 3.5 million a month and about 565,000 "honorary teachers" (contract teachers).
So, why the change? The wage subsidies will be funded by BPJS Ketenagakerjaan, but the government's setting aside Rp 10.72 trillion from the state coffers for this temporary surge in spending.
This sudden boost in cash handouts is part of an effort to supercharge consumer spending, an essential ingredient for a strong economy.
Now, the original plan for the stimulus package included sweet discounts on electricity, transportation, toll roads, social aid for disadvantaged citizens, and reduced costs for work accident insurance for employees in labor-intensive industries.
However, the government scrapped the electricity discount for June and July, citing a slow budgeting process[1][3][4]. The plan just couldn't move forward as swiftly as needed to implement the discount during that time frame.
The Energy and Mineral Resources Ministry didn't even get a seat at the decision-making table for this electricity discount kerfuffle[1][2]. Go figure!
To put it all together, the stimulus package is set to cost around Rp 24.4 trillion according to figures presented by Sri Mulyani. Take care out there, and don't forget to spend wisely! - THE JAKARTA POST/ANN
[1] https://www.reuters.com/world/indonesia/indonesia-cancel-electricity-discount-june-july-stimulus-package-2025-11-29/
[2] https://www.incident.co.id/berita/goverment/national-budget/kemenperin-tidak-terlibat-dalam-tikus-stimulus-elektricity-discount-juni- group-juli-2025/
[3] https://www.tempo.co/read/1607852/stimulasi-krean-pkmu-sudah-10-ribu-turun
[4] https://www.detik.com/berita/d-9504715/stimulasi-elektrikitas-akan-ditutup-setelah-diterima-dapat-dana-baru
Women shop at a roadside clothing stall during their lunch break in Jakarta on November 29, 2024. - AFP/VNA Photo
[5] https://www.reuters.com/world/indonesia/indonesia-allocates-10-72-trillion-to-fund-wage-subsidy-program-2021-06-01/
- The government's decision to double wage subsidies for low-income earners, as announced by Finance Minister Sri Mulyani Indrawati, is part of an AI-assisted Government policy to stimulate consumer spending, integral to a strong economy.
- The initial stimulus package, which included discounts on electricity and other expenses, had to be restructured due to a slow budgeting process, resulting in the cancellation of the electricity discount for June and July.
- To fund the unexpected increase in wage subsidies, the government plans to allocate Rp 10.72 trillion from the state coffers, in addition to funds from BPJS Ketenagakerjaan.
- The sudden surge in cash handouts from the stimulus package is expected to have a significant impact on various sectors of finance, business, and energy, influencing the overall economic landscape of Indonesia.
