The incentives, which will be implemented this month, were announced after a meeting led by President Prabowo at the Presidential Palace here on Monday.
"Today, five economic policy packages were decided with targets for those who will benefit from the stimulus package," Finance Minister Sri Mulyani Indrawati said.
Earlier, Coordinating Minister for Economic Affairs, Airlangga Hartarto, announced plans to launch incentive packages to maintain people's purchasing power, increase household consumption, and drive key sectors such as transportation, energy, employment, and social protection.
Under the first incentive, the government will provide discounts in the transportation sector for two months. They will include a 30-percent discount on train tickets, a 6-percent exemption on value added tax (VAT) on airfare, and a discount of up to 50 percent on sea transportation fares.
Second, it will implement a 20-percent toll tariff discount policy for around 110 million motorists during the school holidays.
Next, it will provide a 50-percent electricity tariff discount to around 79.3 million household customers with a maximum electricity capacity of 1,300 volt-amperes (VA).
The scheme, which will run from June 5 to July 31, 2025, will refer to the discount pattern implemented at the beginning of the year.
Under the fourth package, the government will provide social assistance, comprising an additional basic food card worth Rp200 thousand per month and food assistance of 10 kilograms of rice, which will be distributed to 18.3 million beneficiary families (KPM) for two months.
The government is also preparing a wage subsidy assistance (BSU) for 17 million formal workers, including 3.4 million honorary teachers, with a maximum salary of Rp3.5 million. The assistance of Rp150 thousand per month will be distributed in a single tranche in June.
Fifth, it will reapply the 50-percent discount on work accident insurance (JKK) contributions for workers in the labor-intensive sector.
The program will run for six months, from August 2025 to January 2026, and will be coordinated by the Ministry of Manpower and the Workers Social Security Agency (BPJS Ketenagakerjaan).
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Translator: Andi Firdaus, Yashinta Difa
Editor: Primayanti
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