Indonesia Announces Economic Stimulus Measures to Boost Growth Before Holidays

Indonesia is set to introduce new economic stimulus measures aimed at boosting consumer purchasing power and revitalizing economic growth to approximately 5% this quarter, following the slowest GDP growth in over three years. The stimulus package, planned for launch before the school holidays, includes incentives such as a 50% electricity bill discount for millions of households, food handouts for low-income families, and discounts to support tourism and transportation sectors. Despite these efforts, experts emphasize the importance of supporting informal and rural businesses, which constitute a significant portion of Indonesia's economy and workforce, to ensure sustainable recovery. Former officials highlight the resilience of grassroots economies and the need for consistent national policies to empower micro, small, and medium enterprises (MSMEs), which contribute over 60% of GDP and employ 97% of the workforce. The government aims to stimulate economic growth in the second and third quarters, with the stimulus package's scale still being determined. These measures come amid concerns about slowing economic momentum, reflected in declining consumer spending and sales indicators.