A new economic stimulus package of IDR 26.34 trillion (approximately USD 1.7 billion) launched by the Indonesian government is primarily expected to bolster consumption rather than drive substantial economic growth. M Rizal Taufikurahman, head of the Macroeconomics and Finance Center at the Institute for Development of Economics and Finance (Indef), suggests the package will act as a buffer for consumer spending. The stimulus focuses on maintaining current consumption levels, rather than fostering new investment or production. Experts indicate the package’s impact may be limited due to its structure and scale. Further details regarding the specific allocation of funds within the stimulus remain to be clarified. The effectiveness of the stimulus will depend on its implementation and broader economic conditions. This package is intended for the second half of the year.
