The government has allocated Rp 40 trillion (US$2.77 billion) for Idul Fitri and 13^th month salary bonuses for civil servants, military and police officers, as well as state pensioners and noncivil-service employees working for the government.

“For the Idul Fitri bonus, we’ve allocated Rp 20 trillion. In additional to the 13th month salary bonus, the total budget will be Rp 40 trillion,” Finance Minister Sri Mulyani Indrawati said in Jakarta as quoted by kontan.co.id on Sunday.

The bonuses will be equivalent to a month’s salary.

The Idul Fitri bonus will be paid no sooner than 10 days before the holiday, while the 13^th month salary bonuses will be paid later in June.

The Idul Fitri bonuses for noncivil-servant workers working for nonstructural institutions (LNS) will be in the range of Rp 8.84 million for echelon IV officials to Rp 26 million for heads of LNS.

Institute for Development of Economics and Finance (Indef) economist Bhima Yudhistira said the bonuses would significantly boost consumer spending in the second quarter of 2019, which is expected to grow by 5.1 to 5.2 percent, up from 5.01 percent.

“In the period, government spending will also grow,” Bhima explained, adding that economic growth would amount to 5.2 percent in the second quarter of 2019 following the disbursement of the bonuses.

He said the challenge was how to control inflation, particularly triggered by the increase in staple food prices. (bbn)