More than 33 million Indonesian homes, businesses and public services are poised to see lower monthly power bills until December as the government injects Rp 15.4 trillion ($1.05 billion) into three electricity relief schemes in its bid to accelerate the recovery of the pandemic-hit economy.

The funding, part of the COVID-19 response, will be allocated on top of the Rp 54.79 trillion set aside for annual power subsidies, said the Energy and Mineral Resources Ministry’s electrification director general, Rida Mulyana, on Tuesday.

It is expected that subsidizing the electricity fees will free up an estimated Rp 15.4 trillion in liquidity for customers, which the government hopes will boost household spending and help businesses avoid bankruptcy.

“We hope these [subsidy] numbers will go down, meaning that business activities will have resumed,” Rida told reporters at a briefing. “And we can divert the limited state funds for other needs.”

The three electricity relief schemes are part of the government’s larger Rp 695.2 trillion COVID-19 stimulus package that aims to jump start Indonesia’s coronavirus-stricken economy and maintain employment levels. 

Indonesia booked its first decline in GDP in two decades with the economy shrinking 5.32 percent in the second quarter of this year, as all components of economic activity decreased.

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