Government Prepares Stimulus Package to Boost Economic Growth in H2-2025
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JAKARTA, Investortrust.id – The Indonesian government is finalizing a stimulus package aimed at accelerating economic growth in the second half of 2025, with targeted programs spanning public infrastructure, transport subsidies, and tax relief measures.
Coordinating Minister for Economic Affairs Airlangga Hartarto said the stimulus includes labor-intensive projects in the transportation and public works sectors, designed to enhance near-term growth.
“This will be driven towards better implementation to stimulate growth,” Airlangga said following a cross-ministerial coordination meeting at the Coordinating Ministry for Economic Affairs in Jakarta on Friday, July 25, 2025.
Among the key measures in preparation are discount schemes for the year-end holiday season, including reduced fares for air travel, toll roads, and rail services. These incentives are expected to be announced in September.
In addition, the government plans to extend its value-added tax subsidy for the property sector—known as Pajak Pertambahan Nilai Ditanggung Pemerintah (PPN DTP), or government-borne VAT. Initially set to cover 50% of the VAT in the second half of the year, the policy will now remain at 100%, pending final approval.
“The second semester was initially set for 50%, but it was agreed to remain at 100%,” Airlangga noted.
The administration is also moving to expedite budget absorption for the Makan Bergizi Gratis (MBG) or Free Nutritious Meals program, as well as for Koperasi Merah Putih, a national cooperative initiative.
Airlangga emphasized that worker recruitment under the MBG program will prioritize individuals from the lowest two economic deciles, or desil 1 and desil 2.
“Recruitment of new workers, particularly under MBG, will prioritize those from desil 1 and 2,” he said.
However, Airlangga confirmed that this round of stimulus will not include electricity tariff discounts.