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Jakarta Post

Holiday bonus expected to boost household consumption

  • News Desk

    The Jakarta Post

Jakarta   /   Fri, May 25, 2018   /   11:43 am
Holiday bonus expected to boost household consumption Finance Minister Sri Mulyani Indrawati (Antara/Sigid Kurniawan)

Finance Minister Sri Mulyani Indrawati said the significant increase of the Idul Fitri Holiday bonus for civil servants, military personnel, police officers and pensioners would increase consumption, particularly in middle-class households.

She said in Jakarta on Thursday that the government had tried to improve purchasing power for low-income families through several social programs, including village-fund and non-cash assistance known as the Family Hope Program (PKH).

“[The holiday bonus] for the middle class is expected to trigger [consumption],” Sri Mulyani said at the office of the Economic Coordinating Minister as reported by kontan.co.id.

The government has allocated Rp 35.76 trillion (US$2.5 billion) for holiday bonuses and 13th salaries, up by 68.9 percent from last year’s figure.

Sri Mulyani said the disbursement of both bonuses and social assistance was expected to push up consumption growth in the second quarter of 2018. In the first quarter, consumption grew by 4.95 percent year-on-year (yoy).

She said, however, that her ministry had not estimated the impact of the bonuses and social assistance on consumption growth.

“We have not made any calculation, but I hope that consumption will grow higher than in the first quarter,” she added.

Sri Mulyani said all working units were now preparing documents related to the Finance Ministerial Regulation on holiday bonuses for the disbursement. (bbn)