Key Economic Measures in Indonesia

Cash Aid Distribution

• Indonesia to distribute an additional 30 trillion rupiah ($1.8 billion) in cash aid.
• Aim: Boost consumer spending amid weak job market and slow wage growth.
• Target: Over 35 million families, equating to 140 million people, from October to December.

Support for Fresh Graduates

• Government to subsidize internships for 100,000 fresh college graduates.

Economic Challenges

• Administration led by President Prabowo Subianto.
• Issues: Gig workers struggling due to US tariffs and cheap Chinese imports affecting local manufacturing.
• Previous finance minister, Sri Mulyani Indrawati, ousted amid economic protests.

Stimulus Packages

• New package complements the previous 61 trillion rupiah stimulus in early 2025.
• Measures: Electricity discounts, rice aid, internship programs, and gig worker insurance.

Regional Economic Context

• Southeast Asian governments cushioning impacts of global trade wars.
• Thailand has prepared a $1.4 billion stimulus for food and goods subsidies.

Economic Growth Targets

• Prabowo's administration aims for 6% growth short-term, 8% by 2029.
• IMF forecasts 4.9% growth in 2025 and 2026.
• Recent $12 billion injection into state banks to boost growth to 5.5% in Q4.

Challenges in Fiscal Spending

• As of September, only 60% of annual budget spent.
• Bureaucratic delays and ministry formations causing slow disbursement.
• Key ministries like National Nutrition, Public Works, and Agriculture underutilizing budgets.