Insight

IDR24tn Economic Stimulus for June-July, Will It Work?

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Algo Research Team


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Key Summary:


  • 5 stimulus measures aimed for low-income households and consumption
  • Yet, two months worth of stimulus unlikely to be meaningful for growth
  • The government must address the structural issue of employment in the country

The Indonesian government announced five stimulus packages to be implemented in June–July 2025, which are intended to stimulate domestic demand and support lower-income families.


Context: The fiscal measures amount to IDR24.4tn, of which IDR23.6tn is allocated from the central government budget (APBN), and the remaining IDR0.85tn sourced from off-budget (non-APBN) mechanisms. These include:


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