JAKARTA – The Indonesian government has cancelled its planned energy sector stimulus, which was initially intended for PT Perusahaan Listrik Negara (PLN) customers with electricity capacity below 1,300 VA.

Finance Minister Sri Mulyani Indrawati said the cancellation of the electricity tariff discount was due to limited time for budgeting, while the economic stimulus package must be disbursed promptly during June–July 2025.

“So, if our target is June and July, we decided it cannot be implemented,” said Sri Mulyani in a press conference following a closed-door meeting with President Prabowo Subianto.

Instead, Sri Mulyani explained, the government will redirect the stimulus towards wage subsidy assistance.

The aid will target workers earning below the regional minimum wage (UMR) or provincial minimum wage (UMP), with the benchmark set at monthly incomes under IDR 3.5 million.

Sri Mulyani also emphasised that the reallocation is aligned with the readiness of recipient data.

In the case of this wage subsidy assistance, she noted, the Social Security Agency for Employment (BPJS Ketenagakerjaan) already has more complete and ready data to identify eligible recipients accurately.

“With the available data and the urgency of the programme, we decided to target the wage subsidy assistance,” Sri Mulyani explained.

As previously reported by IDNFinancials.com, the Indonesian government is set to disburse an economic stimulus worth IDR 24.44 trillion during June–July 2025.

Sri Mulyani said the stimulus aims to preserve economic growth momentum and maintain “economic stability.” (KR/ZH)