jakartaGlobe-Sept 15, 2025
President Prabowo Subianto on Monday launched a sweeping economic stimulus package worth Rp 16.23 trillion ($1 billion) for the remainder of 2025, aiming to boost household consumption, ease business costs, and expand job creation. The plan, dubbed the “8+4+5” package, outlines eight short-term acceleration programs to run through the end of 2025, four extensions in 2026, and five longer-term initiatives targeting labor absorption. “This Rp 16 trillion allocation is for this year, and part of the funding has already been budgeted within ministries and other sectors,” Coordinating Economic Affairs Minister Airlangga Hartarto said in Jakarta after the cabinet meeting. At the heart of the package is a focus on employment. The government will fund internships for 20,000 recent university graduates, who will be placed in industries for six months with stipends equivalent to the provincial minimum wage. The program carries a budget of Rp 198 billion. In addition, the state will subsidize income tax (PPh 21) obligations for workers in hotels, tourism, and cafés, expanding a scheme that previously covered only labor-intensive industries. The expanded relief targets more than 552,000 workers and costs Rp 120 billion. To protect vulnerable households, the government earmarked Rp 7 trillion for food aid, providing 10 kilograms of rice per family for two months in October and November. The program may be extended to December depending on fiscal space. “We will evaluate the continuation in December,” Airlangga said. Read more at: https://jakartaglobe.id/business/indonesia-rolls-out-1-billion-stimulus-to-boost-jobs-and-consumption
