Indonesia Strengthens Purchasing Power Through 5 Strategic Incentives Worth IDR 24 Trillion

Jakarta — The government has once again demonstrated its strong commitment to maintaining national economic stability by launching five incentive packages worth a total of IDR 24.44 trillion. This policy is carefully designed to strengthen people’s purchasing power while encouraging economic growth amidst global uncertainty.

Finance Minister Sri Mulyani Indrawati said that the government is here to provide concrete solutions amidst uncertain global economic challenges.

“These five packages are a real form of our commitment to the people,” said Finance Minister Sri Mulyani.

The five incentive packages will come into effect on June 5, 2025, and provide various conveniences for the wider community, especially those in greatest need. The government is providing significant discounts in the transportation sector: a 30 percent discount on train tickets, a 6 percent reduction in VAT for plane tickets, and a 50 percent discount on sea transportation.

“We want the public to directly feel the benefits of this policy, especially ahead of school holidays,” she said.

She added that this policy was designed to reach lower economic groups directly and in real terms.

In addition, a 20 percent toll tariff discount will ease the burden of around 110 million drivers during the school holidays. The thickening of social assistance is also provided through additional Basic Food Cards and rice assistance to 18.3 million beneficiary families.

“The government is not sitting idly by. We are thickening social assistance so that the community remains protected from economic pressure,” said Sri Mulyani.

Not only that, Wage Subsidy Assistance (BSU) of IDR 150 thousand per month is also distributed to 17 million low-wage workers and honorary teachers.

“This assistance directly targets vulnerable workers so that they can continue to live a decent life,” he added.

Meanwhile, Coordinating Minister for the Economy Airlangga Hartarto also emphasized the importance of this incentive to strengthen people’s purchasing power.

“These five strategic incentives are proof of the government’s seriousness in maintaining purchasing power and driving the national economy,” said Airlangga.

He stated that this policy was designed to answer the concrete needs of the community, especially ahead of the new school year and school holidays.

“The school holiday momentum must be utilized to encourage domestic economic turnover,” he said.

The government also invites all elements of society to support and utilize this program optimally.

“We need the support of the entire community so that the impact of this program is maximized,” added Airlangga.

The government also emphasized the commitment to periodic evaluation to ensure the program runs effectively and on target.

[edRW]