Sri Mulyani Reveals The Second Economic Stimulus Policy Package To Anticipate Global Pressure

Minister of Finance Sri Mulyani. (Photo: ANTARA)

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani Indrawati assessed that the economic stimulus policy package launched by the government for the June 'July 2025 period is an important mitigation step to maintain the momentum of national economic growth amid increasing global pressure.

According to Sri Mulyani, towards the end of the second quarter of 2025, a number of global indicators show signs of weakening such as world manufacturing activity starting to slow down, as seen from the global PMI Index entering the contraction zone and global commodity prices showing fluctuations with a tendency to weaken.

In addition, he explained that this situation was exacerbated by the geopolitical conflict between Iran and Israel, which was supported by the United States, which had caused an oil price spike of up to 8 percent before finally easing.

Sri Mulyani also revealed that global trade and investment volumes are projected to grow very thin, even close to zero or decline, and that various multilateral institutions such as the IMF and the World Bank have revised the decline in projections of global economic growth for 2025.

"This is a global situation that is not getting better. The IMF and the World Bank have all revised the growth in 2025 to below," he said in his statement, quoted on Saturday, July 5.

In the midst of this global pressure, Sri Mulyani revealed that the economic condition in Indonesia is considered to be quite resilient, as reflected in the core inflation which is still maintained at the level of 1.9 percent and exports remain stable despite the pressure from President Trump's new tariff policy in April, and Indonesia's trade balance also recorded a surplus increase in May 2025.

On the other hand, Sri Mulyani said, there are several domestic indicators that have begun to show the impact of weakening, such as national manufacturing activities, having entered the contraction zone and cement sales, which had soared in April, but decreased to negative in May, followed by car sales experiencing a significant decline.

Sri Mulyani added that the volatility of the financial sector is increasingly volatile with President Trump's action announcing unilateral tariffs and also with the war in the Middle East which is increasing.

"This illustrates that now it is starting to enter that global impact on the growth of Indonesia's economic growth component," he explained.

In response, Sri Mulyani stated that the Government launched a second economic stimulus package in the second quarter of 2025, which was aimed at encouraging a number of sectors and maintaining the pace of economic growth.

He explained that such as transportation discounts were given to discount train tickets, plane tickets, and sea transportation tickets during the school holiday period in June-July 2025 with a budget of IDR 0.94 trillion.

Then, the discount on toll rates is also given during the school holiday period with a budget of IDR 0.65 trillion non-APBN and the thickening of social assistance is given for additional basic food cards of IDR 200,000 per month for two months and food rice assistance of 10 kg per month is budgeted for IDR 11.93 trillion.

Then, wage subsidy assistance of Rp300,000 to 17.3 million workers with a salary below Rp3.5 million or district/city UMP, to 288,000 Ministry of Education and Culture teachers and 277,000 Ministry of Religion teachers is budgeted at Rp10.72 trillion.

Furthermore, the extension of the discount on work accident guarantees for labor-intensive sector workers is IDR 0.2 trillion non-APBN.

"With this stimulus, we hope that mitigating the tendency for economic growth which is indeed continuously under pressure from the global sector by being able to compensate. So that the impact on President Trump's tariff, which by the IMF World Bank for Indonesia is said to reduce our growth to the level of 4.7 percent," he concluded.