Ricki Putra Harahap, Jakarta – Finance Minister Sri Mulyani announced that the government has canceled the planned 50 percent electricity tariff discount scheduled for June to July 2025.
Sri Mulyani explained that the subsidy was canceled due to budgeting processes that could not be completed in time to meet the June-July implementation target.
"We have held meetings among ministers, and the budgeting process for the electricity discount is much slower than expected. Since our goal was for implementation in June and July, we have decided that the electricity discount cannot be carried out," Sri Mulyani said at the Presidential Palace in Jakarta on Monday.
Instead, she said the budget initially allocated for the electricity discount will be redirected to Wage Subsidy Assistance (BSU) aimed at workers earning below Rp 3.5 million ($215) per month.
"The BPJS Ketenagakerjaan (state insurer) data is now fully prepared, so we have decided to prioritize the wage subsidy assistance program for its data readiness and faster implementation," she added.
Previously, Sri Mulyani had announced that the government allocated Rp 24.44 trillion for a series of social and economic stimulus programs to run from June to July 2025.
The stimulus package includes five main programs: transportation discounts, toll tariff discounts, additional social assistance, wage subsidy assistance (BSU), and an extension of the work accident insurance contribution discount (JKK).
She said that ongoing global geopolitical and geo-economic challenges have prompted the government to issue various incentives to maintain purchasing power and stabilize the national economy.
"The government continues to actively review and take mitigating steps in response to these global pressures. Any policy using the state budget (APBN) is prepared based on applicable legal frameworks," Sri Mulyani said during a press conference at the Presidential Palace.
Of the total budget, Rp23.59 trillion comes from the state budget (APBN), while Rp850 billion is sourced from outside APBN funds.
The breakdown of the five stimulus packages includes:
- Transportation discounts, Rp940 billion from APBN
- Toll tariff discounts, Rp650 billion from non-APBN
- Increased social assistance, Rp11.93 trillion from APBN
- Wage Subsidy Assistance (BSU), Rp10.72 trillion from APBN
- Extension of work accident insurance (JKK) discount, Rp200 billion from non-APBN