TEMPO.CO, Jakarta - The government has canceled its plan to provide a 50 percent discount on electricity tariffs. Finance Minister Sri Mulyani Indrawati announced this decision after a ministerial meeting, citing a slow budgeting process for the program.
"Therefore, if our goal was for June and July, we decided that the [electricity tariff discount] cannot be implemented," Sri said at the Jakarta Presidential Palace on Monday, June 2, 2025. Previously, Coordinating Minister for Economic Affairs Airlangga Hartarto had included the electricity tariff discount as one of six government subsidy and assistance packages.
In lieu of the electricity discount, the government will increase the allocation for the Wage Subsidy Program (BSU). The assistance, initially set at Rp150,000 per month, will be raised to Rp300,000 per month. Sri Mulyani confirmed that the BSU will be distributed to 17.3 million workers and 565,000 honorary teachers in June and July 2025, totaling Rp600,000 for two months per recipient.
Furthermore, among the five economic stimulus packages unveiled today, the government will introduce various transportation benefits. These include a 30 percent discount on train tickets, a 6 percent government-borne Value Added Tax (VAT) discount for flight tickets, and a 50 percent reduction for sea transport tickets. In total, the government has earmarked a budget of Rp940 billion for these programs, which are slated for implementation in June and July 2025.
Additionally, Sri Mulyani confirmed that the government has established a 20 percent toll tariff discount for June and July 2025. It is projected that approximately 110 million vehicle users will traverse toll roads during this period.
This program is estimated to cost Rp0.65 trillion. "For this, it will be conducted through non-APBN (non-state budget) operations because, in this instance, the Ministry of Public Works has issued a circular to toll road business entities concerning toll tariff discount policies," Sri explained.
In addition to the BSU, transportation discounts, and toll reductions, the economic stimulus package provided by the government for the June and July 2025 period also encompasses an increase in social assistance, with a budget allocation of Rp11.93 trillion. Sri Mulyani indicated that the government will provide an additional Rp200,000 and 10 kilograms of rice aid per month for two months. This assistance is aimed at the 18.3 million beneficiaries of the Staple Food Card program and will be distributed in June and July 2025.
The final economic stimulus is a 50 percent discount on Work Accident Insurance (JKK) for 2.7 million workers in six labor-intensive industries, allowing them to pay only half of the JKK contribution. Unlike the other four stimulus packages, the JKK contribution discount will apply for six months.
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