Government Readies Rp10.8 Trillion Stimulus to Power Q3 2025 Growth
Main Takeaways
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JAKARTA, Investortrust.id – Finance Minister Sri Mulyani Indrawati has announced that Rp10.8 trillion ($675 million) in government stimulus remains available to help bolster Indonesia’s economic momentum in the third quarter of 2025.
The remaining budget, she said on Tuesday, Aug 5, 2025, is expected to inject fresh momentum into the economy following a 5.12% annual expansion in the second quarter.
Speaking at the Ministry of Economic Affairs in Jakarta, Sri Mulyani emphasized that the government has already begun accelerating fiscal disbursement to maintain growth in the July–September period.
She outlined several flagship programs targeted for faster rollout in Q3, including Makan Bergizi Gratis (Free Nutritious Meals), grassroots school projects, education facility rehabilitation, and a targeted expansion of the Housing Finance Liquidity Facility (FLPP), which aims to disburse 220,000 units in the third quarter alone.
“We’re also supporting food price stabilization because household consumption remains crucial,” she said.
Food Security, Industrial Defense Also in Focus
To stabilize food prices, the government has disbursed Rp16.6 trillion ($1.04 billion) to state logistics agency Bulog to intervene in the rice market, and Rp5 trillion ($312 million) for corn. Efforts are also ongoing to ensure fertilizer availability through deregulation in the agricultural sector.
Sri Mulyani added that fiscal support is also being directed to maintain a competitive investment climate, including tariff protections where necessary.
“Together with the trade and industry ministers, we’re ready to implement safeguard duties if needed to protect domestic industry,” she said.
To facilitate this, the Ministry of Finance is simplifying tax administration for e-commerce platforms, while ensuring no new levies are introduced.
Manufacturing Sector Surges Past National Growth
Meanwhile, Minister of Industry Agus Gumiwang Kartasasmita reported that Indonesia’s manufacturing sector expanded by 5.68% in Q2—outpacing national GDP and signaling a strong rebound from the previous quarter’s 4.55% growth.
“The second-quarter performance was also much stronger than the same period last year, when the sector grew just 3.95%,” he said in a statement.
Export demand and rising domestic consumption helped drive this improvement, especially in metals, chemicals, and food processing. Basic metal industries grew by 14.91%, propelled by robust overseas orders for iron and steel products.
Chemical, pharmaceutical, and traditional medicine industries recorded 9.39% growth, fueled by demand for health products and downstream chemical exports. Meanwhile, food and beverage manufacturing rose 6.15%, supported by high demand for palm oil, cooking oil, beverages, and processed foods.
Support for Cooperatives, Special Economic Zones
The government is also preparing to channel funds through state-owned banks to back the Koperasi Merah Putih (Red and White Cooperatives), part of a broader strategy to energize grassroots economies in the second half of the year.
Further investment is being planned for special economic zones, which Sri Mulyani said are expected not only to spur short-term growth but also to contribute to structural transformation of the economy.
“Growth is important, but transforming Indonesia’s economy is even more crucial,” she said.
She added that the government is finalizing an additional stimulus package to support household spending ahead of the Independence Day and year-end holidays, including Christmas and New Year, as part of a Rp287.8 trillion ($18 billion) countercyclical fiscal policy in the second half of 2025.
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