Indonesia to launch wage subsidy for low-income workers
The subsidy will be distributed over a two-month period to help sustain public purchasing power amid global economic headwinds and in anticipation of increased household spending during the school holiday season.
Jakarta (VNA) – The Indonesian Government is finalising a new wage subsidy programme that will provide 150,000 IDR (9.23 USD) per month to workers earning less than 3.5 million IDR. The scheme is part of a broader economic stimulus package set for rollout in the second quarter of 2025.
Chief Economic Affairs Minister Airlangga Hartarto said on May 26 that the proposal is still under discussion with relevant ministries and is scheduled to take effect on June 5.
The subsidy will be distributed over a two-month period to help sustain public purchasing power amid global economic headwinds and in anticipation of increased household spending during the school holiday season. The programme was previously discussed during the National Coordination Meeting on May 23. It is part of a wider stimulus plan, known as the Incentive Package, which also includes electricity tariff discounts, food aid, airline ticket subsidies, and other social protection programmes.
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In the first two months of 2025, the government allocated 13.6 trillion IDR to provide a 50% discount on electricity bills for customers with power usage ranging from 450 volt-amperes (VA) to 2,200 VA. The subsidies benefited around 81.4 🧔million customers, including 24.6 million with 450 VA, 38 million with 900 VA, 14.1 million with 1,300 VA, and 4.6 million with 2,200 VA./.
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