According to President Prabowo Subianto, the stimulus package includes 10 kilograms of rice assistance per month for 16 million beneficiaries.
Speaking at a press conference here on Tuesday, he explained that the stimulus package aims to maintain people's purchasing power as well as boost the economy.
In addition to food assistance, the government will provide a 50-percent discount on electricity costs for homes with installed electricity capacity of up to 2,200 VA to reduce the burden of household expenses.
The government will also provide incentives under Article 21 Income Tax (DTP) for workers in labor-intensive sectors with monthly salaries of up to Rp10 million.
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"There is also free income tax for MSMEs (micro, small, and medium enterprises) with a turnover of less than Rp500 million per year and so on. The total value of this stimulus package is Rp38.6 trillion," Prabowo said.
Coordinating Minister for Economic Affairs, Airlangga Hartarto, has revealed that the government will provide 10 kilograms of rice assistance per month for decile 1 and 2 beneficiary families in January–February 2025.
For low-income households, the government will provide a stimulus of one percent government-borne VAT for basic necessities and important goods, such as wheat flour, subsidized cooking oil Minyakita, and industrial sugar. Thus, the VAT rates for these products will remain at 11 percent.
The stimulus for basic necessities and essential goods is crucial for maintaining people's purchasing power, especially for meeting basic needs.
USD1 = Rp16,199
Related news: President Prabowo announces Jan rollout of 12 percent VAT
Translator: Mentari Dwi Gayati, Yashinta Difa
Editor: Rahmad Nasution
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