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Indonesia to cut transport and power prices to spur consumption

Prima Wirayani / Bloomberg
Prima Wirayani / Bloomberg • 2 min read
Indonesia to cut transport and power prices to spur consumption
Household consumption, which accounts for more than half of Indonesia’s gross domestic product, grew just 4.89% in the first three months of the year, the slowest pace since the end of 2023. Photo: Bloomberg
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Indonesia will cut transport and power costs and deliver other stimulus in June and July in an effort to boost household spending and rekindle economic growth.

The government will provide discounts on train, plane and ferry tickets during the school holiday period, as well as toll road fee reductions targeting about 110 million drivers, the Coordinating Economic Affairs Ministry said in a statement Saturday.

It will also slash electricity bills by 50% for 79.3 million households and increase the allocation of staple food assistance for 18.3 million families.

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