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Indonesia Launches $200 Trillion Stimulus to Boost Spending

9/16/2025

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Story summary
  • Indonesia's government is introducing a year-end stimulus package to enhance household spending and economic growth, its third initiative this year.
  • Coordinating Economy Minister Airlangga Hartarto revealed the “8+4” incentive, focusing on workers, students, and key industries.
  • Key measures include paid internships, increased personal income tax relief, and a three-month food aid extension.
  • The plan also includes cash-for-work programs in labor-intensive sectors and social security fee waivers for freelancers.
  • Recent data indicates declining household spending and consumer confidence, prompting these actions, alongside a shift of Rp 200 trillion in state deposits to boost loans and private sector activity.