Government's 50-percent power tariff cut supports purchasing power

Jakarta (ANTARA) - The government will officially implement a 50-percent electricity tariff discount for household customers with power capacities up to 1,300 VA from June 5 to July 31, 2025.

This policy is part of the second-quarter 2025 economic stimulus package designed to maintain the public's purchasing power, particularly during the school holiday period and the transition to the second half of the year.

Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, stated in Jakarta on Tuesday that the second-quarter 2025 economic stimulus measures had been thoroughly discussed during a Limited Coordination Meeting (Rakortas) at the ministerial level on Friday (May 23).

"At the Rakortas, it was agreed that all of these economic stimulus programs would be implemented starting June 5, 2025," he remarked.

Moegiarso explained that the electricity discount targets around 79.3 million household customers and adopts the same scheme as the one previously implemented in January–February 2025.

The policy aims to ease household expenses while also maintaining domestic consumption stability. The implementation will be coordinated by the Ministry of Energy and Mineral Resources, the Ministry of Finance, and PLN (State Electricity Company).

In addition to the electricity discount, the government is launching other stimulus programs to boost domestic consumption.

These include a two-month mass transportation discount during the school holiday period, such as a 30-percent discount on train tickets, a six-percent discount on airline tickets through the Government-Borne Value-Added Tax (PPN DTP) scheme, and up to a 50-percent discount on sea transportation fares.

The government has also set a 20-percent toll road tariff discount for approximately 110 million toll road users, following the pattern earlier applied during the Eid and Christmas–New Year holidays.

On the social protection front, 18.3 million Beneficiary Families (KPM) will receive an additional Rp200 thousand per month through the Food Assistance Card program, along with 10 kg of rice as food aid for two months.

In the labor sector, the government will resume the Wage Subsidy Assistance (BSU) program, providing Rp150 thousand per month to 17 million workers earning below Rp3.5 million, as well as to 3.4 million honorary teachers. This aid will be disbursed in a single payment in June 2025.

In addition, incentives will be provided to labor-intensive sectors through a 50-percent discount on Work Accident Insurance (JKK) contributions, valid from August 2025 to January 2026.