Indonesia will introduce a $2bn stimulus to encourage consumer spending on everything from flights to presents during the holiday season, a senior government minister has said, as President Prabowo Subianto tries to revive the troubled economy.
Indonesia, one of the world’s largest consumer markets with a population of more than 280mn, is grappling with weaker purchasing power and a sluggish job market, threatening its ability to maintain stable economic growth of about 5 per cent.
In an interview, Airlangga Hartarto, the co-ordinating minister for economic affairs, told the Financial Times that the government would offer discounts on transport, groceries, retail purchases, and tax exemptions on airline tickets. These new measures would be on top of $4.5bn worth of stimulus announced since December 2024.