JAKARTA, May 26 (Xinhua) -- The Indonesian government plans to launch a new economic stimulus package on June 5 to maintain public purchasing power and drive national economic growth, particularly during the June-July school holiday period, according to Coordinating Minister for Economic Affairs Airlangga Hartarto.
"This stimulus package is expected to bolster economic growth in the second quarter. So we are using this momentum to set up several programs," Airlangga said in a statement published by the Ministry of State Secretariat on Monday.
He explained that the programs are being designed to stimulate growth primarily through increased household consumption.
The upcoming stimulus package will focus on encouraging domestic consumption by targeting key areas such as transportation, energy, and social welfare. It will include transportation discounts for train, airline, and sea transport tickets during the school holidays, as well as toll road tariff reductions aimed at benefiting 110 million motorists.
In the energy sector, the government will offer a 50 percent electricity tariff discount throughout June and July to more than 79 million low-capacity households consuming less than 1,300 VA. Social assistance programs will also be expanded, including the distribution of basic food cards and food aid to 18.3 million low-income families.
In addition, wage subsidies will be provided to workers earning below 3.5 million rupiahs (about 215 U.S. dollars) per month or under the provincial minimum wage, including honorary teachers. The government will also extend the current work accident insurance premium discount program for workers in labor-intensive industries.
The government expects these combined efforts to help sustain national GDP growth around 5 percent in the second quarter.
Airlangga also encouraged local governments to actively promote domestic tourism and organize public entertainment activities to boost people's mobility and spending. He stressed the need for strong synergy between ministries and agencies to ensure the timely implementation and tangible impact of the stimulus package. ■
