Indonesia has announced a stimulus package worth about USD 989 million (IDR 16.23 trillion) to be implemented in the last quarter of 2025, with some programs extending into 2026. The package includes food aid in the form of 10 kilograms of rice for 18.3 million households, the elimination of personal income tax for workers in the tourism sector, and a cash-for-work program targeting more than 600,000 people from September to December. Other measures involve a paid internship program for 20,000 university graduates, lower work-injury insurance premiums for motorcycle taxi and truck drivers, and the extension of current small business tax rates until 2029, postponing a planned tax increase.
The government’s goal is to maintain economic growth at 5.2% in 2025, following a 5.12% growth rate in the second quarter, amid fears of slowing momentum. To support this, state banks will provide IDR 130 trillion in construction loans to property developers and small businesses, with the government subsidising 5% of annual interest costs. In addition, a major replanting program covering around 870,000 hectares of crops such as sugar cane, cocoa, coffee, cashew, nutmeg, and coconut is planned for 2026, with the potential to create up to 1.6 million jobs. These initiatives highlight Indonesia’s focus on combining short-term relief with long-term economic productivity and job creation.
