Will Indonesia’s US$762 million Ramadan stimulus be a ‘positive’ boost for the economy?
The package, which includes fare cuts and food handouts, is meant to keep people travelling and shopping, and help shore up early-growth momentum
The 12.83 trillion rupiah (US$762 million) stimulus package unveiled ahead of the Muslim fasting month, which culminates in Eid ul-Fitr, is meant to keep people travelling and shopping despite rising food prices and softer purchasing power.
In a statement on February 10, Coordinating Economic Affairs Minister Airlangga Hartarto said the package was meant to “increase mobility and maintain people’s purchasing power … to make a positive contribution to national economic growth”.
Officials have also cast the package explicitly as a bid to shore up early-year growth momentum, with Hartarto saying, “Our target is to boost the economy because the first quarter is important.”
Ramadan, which is expected to begin this week with Eid falling in late March, is typically Indonesia’s peak consumption period, marked by gatherings to break the fast, shopping for new clothes and the annual mudik homecoming, when millions travel to their hometowns.