Electricity Tariff Assistance Not Eliminated, Reallocated to Increased Wage Subsidy Program
JAKARTA — The government has officially replaced the 50% electricity tariff discount incentive with an increase in the Wage Subsidy Assistance (BSU) of IDR 300,000 per month for the June–July 2025 period.
This step represents a reallocation of assistance rather than its elimination, aimed at ensuring a more immediate and tangible economic impact for the public.
Minister of Finance Sri Mulyani Indrawati emphasized that reallocating the budget from electricity discounts to BSU is intended to optimally preserve public purchasing power.
“We want a stronger leverage effect. Since the electricity discount was cancelled, we increased the BSU to maintain purchasing power,” said Sri Mulyani following a meeting at the Presidential Palace Complex.
The BSU program will target around 17 million workers earning less than IDR 3.5 million, as well as 3.4 million honorary teachers.
Each recipient will receive a total of IDR 600,000 over two months, with a total budget allocation of IDR 10.72 trillion.
Sri Mulyani explained that the electricity discount was cancelled due to budgeting constraints that made timely execution unfeasible.
“Following inter-ministerial meetings, it was decided that the electricity discount budget process was too slow to be implemented quickly,” she added.
Similarly, the Presidential Communications Office (PCO) expressed support for the policy. PCO Head Hasan Nasbi stated that the selection of BSU as the preferred assistance scheme was based on technical readiness and the urgency of timely distribution.
“The government assessed that, technically, BSU is the most feasible within the next two months, including in terms of data and preparation. That’s why these five stimulus packages were chosen,” Hasan explained.
“These five stimulus packages were designed by the government to generate better results and to boost our economy,” he added.
“The total amount of stimulus provided by the government is no small figure — it reaches IDR 24.4 trillion,” Hasan continued.
Minister of Manpower Yassierli stated that the BSU disbursement process is targeted to begin as early as Thursday, June 5, 2025.
“We are doing our best, as this involves coordination across ministries,” Yassierli said in Jakarta.
“BSU is one form of government intervention to ensure that low-income groups retain sufficient purchasing power,” he emphasized.
With recipient data now more accurate through integration between BPJS Ketenagakerjaan and the Integrated National Socioeconomic Data (DTSEN), the government ensures that assistance distribution will be faster, more precise, and more effective.
The government hopes this measure will serve as an effective social safety net amid ongoing global economic challenges.
