Indonesia Readies Stimulus to Address El Nino Impacts

10 hours ago 1

August 5, 2026 | 07:34 pm

TEMPO.CO, Jakarta - Finance Minister Purbaya Yudhi Sadewa said the government is preparing a stimulus package for the second half of 2026 to anticipate the impacts of El Nino, which has been active since June and has the potential to impact various sectors.

According to Purbaya, President Prabowo Subianto has mandated immediate preparation of the stimulus package as a precaution against the potential impact of El Nino on Indonesia's economic condition.

The government, however, is still discussing the budget and the finer details on the program. Purbaya said his ministry is awaiting the proposals from relevant ministries.

"Once it's finalized, we'll implement it. But the discussion is underway," he said.

The Meteorology, Climatology, and Geophysics Agency (BMKG) earlier reported that El Nino has reached the "strong" category and is likely to intensify—risking a drier and longer dry season across several regions in the country. 

The agency predicted low to very low rainfall in August and September, before the rainy season approaches in mid-October 2026.

Several regions south of the equator are expected to be the hardest-hit, including Nusa Tenggara, Bali, Java, southern Sumatra, and southern Papua.

BMKG also warned that El Nino will likely has far-reaching impacts on various sectors, including agriculture, clean water supply, reservoir and irrigation management, wildfires, energy, health, fisheries, and even community economic activities.

Read: BMKG: Indonesia Sees Driest July This Year Since 1991

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