Indonesia has rolled out $1.5bn of stimulus measures to boost consumer spending, hoping to counter slowing growth as falling commodity prices and trade concerns hit south-east Asia’s largest economy.
Starting Thursday, Indonesia will provide discounts on transportation fares and wage subsidies for millions of households for two months. It is also offering toll road discounts and additional social aid for the most vulnerable, as part of the stimulus package expected to cost Rp24.44tn ($1.5bn).
Finance minister Sri Mulyani Indrawati said the measures were intended to encourage travel and lift household consumption and growth during the school holiday period. “We hope that in the second quarter economic growth can be maintained close to 5 per cent,” she said this week.