People walk on a street in Jakarta, Indonesia. Photo by Reuters
The Indonesian Government is finalizing a new wage subsidy programme that will provide IDR150,000 (US$9.23) per month to workers earning less than IDR3.5 million IDR.
The scheme is part of a broader economic stimulus package set for rollout in the second quarter of 2025.
Chief Economic Affairs Minister Airlangga Hartarto said on May 26 that the proposal is still under discussion with relevant ministries and is scheduled to take effect on June 5.
The subsidy will be distributed over a two-month period to help sustain public purchasing power amid global economic headwinds and in anticipation of increased household spending during the school holiday season.
The programme was previously discussed during the National Coordination Meeting on May 23. It is part of a wider stimulus plan, known as the Incentive Package, which also includes electricity tariff discounts, food aid, airline ticket subsidies, and other social protection programmes.
The Indonesian Government is set to reintroduce electricity bill discounts for low-power households starting June 5.
In the first two months of 2025, the government allocated IDR13.6 trillion to provide a 50% discount on electricity bills for customers with power usage ranging from 450 volt-amperes (VA) to 2,200 VA. The subsidies benefited around 81.4 million customers.
