Indonesia’s Fiscal Boost May Miss the Mark on Inclusive Growth

Indonesia’s Fiscal Boost May Miss the Mark on Inclusive Growth

DTP VAT boosts housing, but cutting wage and electricity aid may limit Indonesia’s H2/2025 growth and hurt low-income consumption.

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Senin, 28 Juli 2025 | 23:15

Bisnis.com, JAKARTA — The government’s plan to extend several fiscal stimulus measures through the end of the year is expected to yield a more limited impact on Indonesia’s overall economic growth.

Coordinating Minister for Economic Affairs Airlangga Hartarto announced on Friday (25/7) that a number of stimulus policies would continue into H2/2025, including the 100 percent government-borne value-added tax (DTP VAT) for home purchases. However, other support programs such as the wage subsidy (BSU) and electricity tariff discounts will be discontinued.

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