Indonesia Announces Nearly USD1 Billion Government Stimulus Package
Indonesia has announced a new government stimulus package worth nearly USD1 billion (16.23 trillion rupiah) to support economic growth and create jobs. The initiative will roll out in the final quarter of 2025, with several measures extending into 2026.
The package includes food aid, infrastructure projects, and employment programmes aimed at supporting low-income households and rural communities. Around 18.3 million families will receive 10 kilograms of rice each, while more than 600,000 people will gain temporary jobs through a “cash-for-work” scheme focused on building roads, bridges, and public facilities.
Other measures include removing personal income tax for tourism workers, continuing reduced income tax rates for small businesses until 2029, and offering paid internships for 20,000 university graduates. Additionally, ride-hailing and truck drivers will benefit from a 50% discount on state-provided work injury insurance.
The government also plans to launch a large-scale agricultural replanting programme in 2026, covering 870,000 hectares of land for crops like sugar cane, coffee, and cocoa. This is expected to generate 1.6 million new jobs. Airfare discounts for year-end travel and housing construction loans worth 130 trillion rupiah will further stimulate demand, with the state covering part of the interest costs to support affordable housing goals.
Officials expect the government stimulus package to help Indonesia maintain its 5.2% growth target for 2025 without widening the national budget deficit, which remains forecast at 2.78% of GDP.
Setting Up Your Business in Indonesia with 3E Accounting
If your business wants to understand how the latest government stimulus package can open new opportunities in Indonesia, 3E Accounting can help. Contact us today for expert guidance on business setup, tax incentives, and market entry strategies.
