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Indonesia Launches Nearly $1 Billion Economic Stimulus Plan (1) Indonesia announced a new economic stimulus package worth 16.23 trillion rupiah (approximately US$989 million) on Monday, including food aid and infrastructure development projects that will provide temporary jobs for over 600,000 people. (2) Coordinating Minister for Economic Affairs Airlangga Hartato told reporters that the stimulus measures will be implemented in the fourth quarter of 2025, with some measures extended until 2026. (3) The "cash-for-work" program will invest 5.3 trillion rupiah and provide employment opportunities for over 600,000 people between September and December. (4) The government will also distribute 10 kilograms of rice to each of 18.3 million households and exempt tourism workers from personal income tax. (5) The stimulus plan also includes paid internships for 20,000 university graduates and a 50% discount on national work-related injury insurance premiums for ride-hailing motorcycle and truck drivers. (6) Personal income tax exemptions and insurance incentives will be extended until 2026. 7. The government also decided to maintain the 0.5% business tax rate for small and micro businesses until 2029, postponing the planned increase to 1% next year. 8. A replanting program for 870,000 hectares of plantations (covering crops such as sugarcane, cocoa, coffee, cashews, nutmeg, and coconut) will begin in 2026, creating an estimated 1.6 million new jobs. 9. Finance Minister Purbaya Yudhi Sadeva stated that the new measures will not affect the 2025 budget deficit forecast, which is now projected at 2.78% of GDP. 10. Indonesia's economy grew by 5.12% year-on-year in the second quarter, the fastest pace in two years, but policymakers noted signs of a slowdown in the third quarter. 11. The government hopes to achieve its 5.2% economic growth target this year through this stimulus package.