Indonesia to Launch Second-Half Economic Stimulus

1 week ago 3

September 6, 2025 | 06:13 pm

Coordinating Minister for Economic Affairs Airlangga Hartarto prepares to attend a limited meeting led by President Prabowo Subianto at the Presidential Palace, Jakarta, July 22, 2025. Antara/Galih Pradipta

TEMPO.CO, Jakarta - Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto has confirmed the government's commitment to launching an economic stimulus package in the second half of this year. This announcement followed a closed meeting with President Prabowo Subianto at the Presidential Palace in Jakarta.

After the meeting on Thursday, September 4, 2025, Airlangga stated, "The second-half stimulus will continue," as quoted from the Presidential Secretariat’s YouTube channel on Saturday, September 6, 2025.

The former Minister of Industry explained that several ongoing programs would be expanded, including salary subsidies for workers earning less than Rp10 million. Additionally, incentives such as government-borne income tax cuts (PPh) will be provided for labor-intensive sectors.

According to Airlangga, the PPh reduction has already benefited 1.7 million people. "Then there are programs related to housing through the people's business credit (KUR). There is also a home renovation program that will continue to be promoted," he said.

Addressing Public Demands

The government is also responding to economic concerns raised during recent mass demonstrations, including the issue of widespread layoffs.

The Golkar Party politician revealed that preventing widespread layoffs is a government priority. Efforts include pushing for policy deregulation in several industries, a step he said could create more than 100,000 jobs in Java.

Furthermore, the government is preparing support facilities for workers affected by layoffs, particularly contract workers. "We already have employment facilities for contract workers, especially those with one-year contracts," he added.

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