The assistance is aimed at maintaining the purchasing power of low-income groups, especially workers and honorary teachers, Finance Minister Sri Mulyani Indrawati informed at the Presidential Office on Monday.
“This fourth incentive is intended for workers and honorary teachers. It includes a wage subsidy for 17.3 million workers earning less than Rp3.5 million (US$208), or below the provincial or district minimum wage,” the minister explained.
According to her, the 17.3 million workers registered with the Workers Social Security Agency (BPJS Ketenagakerjaan) will receive a one-time Rp600,000 subsidy in June, covering a two-month period (June–July).
Additionally, the government will provide the same amount of support to around 565 thousand honorary teachers -- comprising 288 thousand teachers under the Ministry of Primary and Secondary Education and 277 thousand teachers under the Ministry of Religious Affairs, Indrawati said.
"Each honorary teacher will also receive Rp600 thousand in assistance. The distribution will be carried out entirely in June," she added.
The government is also extending a 50-percent discount on Work Accident Insurance (JKK) contributions for six months, targeting 2.7 million workers engaged in labor-intensive industrial sectors.
The finance minister expressed hope that the program would ease the burden on businesses facing global pressures and help maintain worker protection in sectors vulnerable to economic turmoil.
The wage subsidy and assistance for honorary teachers will be funded through a state budget allocation of Rp10.72 trillion (approximately US$639 million), while the JKK contribution discount will be financed through non-state budget sources and implemented by the Ministry of Manpower and BPJS Ketenagakerjaan.
The government has also announced other stimuli in the form of discounts on public transportation tickets, including a 30-percent discount on train fares, a 6-percent VAT cut for plane tickets, and a 50-percent discount for sea transportation.
It will also prepare a social protection package worth Rp11.93 trillion (US$712 million) to provide additional Basic Food Card benefits worth Rp200 thousand (US$11.94) per month and 10 kilograms of rice per month to 18.3 million beneficiary families (KPM).
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Translator: Andi Firdaus, Resinta Sulistiyandari
Editor: Primayanti
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