This May feels quite different compared to the same month in previous years. During May 2025, the Indonesia Composite Stock Index (IHSG) has surged by 6.61%. This is a stark contrast to the previous four years, when the index saw consistent declines during May.

Good news also comes from within the country, as President of Indonesia, Prabowo Subianto, has announced six types of assistance or incentives set to be distributed from June to July 2025. These are intended to stimulate public purchasing power and support the national economy.

This optimistic development could act as another catalyst for several sectors, potentially sustaining IHSG growth through the end of May and possibly into the following month.

With only three trading days remaining in May, the IHSG seems likely to break through the psychological level of 7,300 soon. This is because May 29 is a public holiday (Ascension of Jesus), and May 30 has been declared a collective leave day.

So, which sectors will benefit from President Prabowo's aid programs?

Here is the full list of government support starting June 5, 2025:

1. Transportation Discounts

The government will offer discounts on various modes of transport including sea, train, and air travel. These discounts are valid during the school holidays in June and July 2025.

2. Toll Fee Discounts

A discount on toll fees will also be introduced, targeting 110 million drivers. With an extended holiday at the end of May and early June, this aims to reduce costs for those planning long trips.

3. Electricity Bill Discounts

A 50% discount on electricity rates will be reintroduced for June–July 2025, applicable to 79.3 million households with a power capacity below 1,300 VA.

4. Additional Social Aid Allocation

The government will provide additional social assistance through food cards and food aid for 18.3 million beneficiary families.

5. Wage Subsidy Assistance (BSU)

Wage subsidies, similar to those distributed during the Covid-19 pandemic, will be reissued to workers earning less than IDR 3.5 million per month.

6. Extension of JKK Contribution Discount

The program to reduce workplace accident insurance (JKK) contributions for labor-intensive workers will be extended.

These initiatives are seen as critical to boosting household consumption. Indonesia's economy only grew by 4.87% in Q1 2025, which is slower than the 5.11% growth recorded in Q1 2024 and also lower than Q4 2024 growth of 5.02%.

The government stimulus package could boost performance across sectors such as transportation, toll roads, consumer goods, and banking.

Thanks to government discounts, Indonesian consumers may increase spending, driving higher transaction volumes in the banking sector.

 

Stock Performance by Sector

Saham Transportasi:

Saham Jalan Tol:

Saham Konsumer:

Saham Perbankan: