Speaking at the Presidential Office in Jakarta on Monday, Finance Minister Sri Mulyani Indrawati said the decision was made after a review revealed that the budget allocation process would not align with the intended implementation timeline.
"We found that finalizing the electricity discount budget would take too long. Therefore, implementing the rebate in June and July is no longer feasible," she told reporters after a limited cabinet meeting with President Prabowo Subianto.
In contrast, Indrawati said, preparations for the BSU program are already more advanced, particularly in terms of data readiness.
She acknowledged that the BSU program faced data-related setbacks during the COVID-19 period, especially regarding incomplete records of eligible beneficiaries.
However, she noted that the Social Security Agency for Workers (BPJS Ketenagakerjaan) has now verified and updated the data.
“The data from BPJS Ketenagakerjaan is now reliable, and we’ve narrowed the focus to workers earning below Rp3.5 million (approximately US$215) per month,” she explained.
The plan for the electricity rebate, initially announced by Coordinating Minister for Economic Affairs Airlangga Hartarto on May 24, was scheduled to run from June 5 to July 31, targeting customers with 450 to 2,200 VA electricity capacity—similar to a rebate program in January and February.
Despite the cancellation, the government will proceed with its broader economic stimulus package worth Rp24.44 trillion (around US$1.5 billion) to boost public purchasing power in the second quarter.
The package includes a 30-percent discount on train tickets, a 6-percent discount on airfares through the Government-Borne Value-Added Tax (PPN DTP) scheme, and a 50-percent discount on sea transportation fares.
Meanwhile, toll road users will benefit from a 20-percent tariff discount, aimed at assisting an estimated 110 million travelers. The incentives will be available during the June–July school holiday season.
In terms of social assistance, 18.3 million families will receive an additional Rp200,000 (US$12.29) per month through the Food Assistance Card program, along with 10 kilograms of rice for two months.
For workers, the BSU program will resume to provide Rp300,000 (US$18.43) per month to 17.3 million employees earning under Rp3.5 million, as well as contract-based honorary teachers. This aid will be distributed as a one-time payment in June.
Additionally, the government will offer a 50-percent discount on Work Accident Insurance (JKK) contributions for labor-intensive sectors, effective from August to next January.
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Translator: Andi F, Tegar Nurfitra
Editor: Anton Santoso
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