Indonesia Unveils $1 Billion Stimulus Package for Q4 2025

Indonesia announced a new economic stimulus package worth 16.23 trillion rupiah (about $989 million) aimed at boosting economic growth and supporting household spending in the fourth quarter of 2025 and into 2026. The package includes food assistance, providing 10 kilograms of rice to 18.3 million households, a 'cash for work' scheme employing over 600,000 people in infrastructure projects, and a paid internship program for 20,000 university graduates to connect them with employers. Personal income tax relief will be extended to workers in the tourism sector, and a 50% discount on work injury insurance premiums will be provided for ride-hailing motorcycle taxi drivers and truck drivers, with some measures continuing into 2026. The government also decided to maintain the current 0.5% turnover tax rate for small businesses until 2029 instead of increasing it to 1%. These initiatives aim to sustain Indonesia's economic growth, which expanded 5.12% year-on-year in Q2 2025, the fastest growth rate in two years, despite signs of a slowdown and external challenges such as increased US tariffs. Coordinating Economy Minister Airlangga Hartarto emphasized that the stimulus is designed to help Indonesia achieve its 5.2% GDP growth target for 2025.