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Indonesia prepares stimulus to tackle El Nino risks

The President has instructed us to prepare the programmeJakarta (ANTARA) – Indonesia's Finance Minister Purbaya Yudhi Sadewa said the government is preparing a stimulus package for the second half of 2026 to mitigate the impacts of El Nino, which has been active since June and could affect various sectors.Minister Sadewa said President Prabowo Subianto had instructed the government to finalise the stimulus package promptly as a precautionary measure against the potential economic impacts of El Nino.”The President has instructed us to prepare the programme,” he said during a media briefing in Jakarta on Wednesday.The government has yet to determine the budget allocation and details of the programme, he added.He said the discussions on the programmes are still underway and the ministry is awaiting proposals from relevant technical ministries or agencies before finalising the stimulus package.”Once it has been completed, we will implement it,” he said.The Meteorology, Climatology, and Geophysics Agency (BMKG) has stated that El Nino has reached the strong category and could intensify further into a very strong event, raising the risk of a drier and longer dry season in several areas of Indonesia.The Agency's Head Teuku Faisal Fathani said on Tuesday (Aug 4) that latest monitoring showed El Nino-Southern Oscillation index had reached +1.59, placing the phenomenon in a strong category.BMKG also noted that rainfall during August to September 2026 is forecast to remain in the low to a very low category before the rainy season begins in mid-October 2026.The impacts are expected to be felt mainly in areas south of the equator, including East Nusa Tenggara, West Nusa Tenggara, Bali, Java, southern Sumatra, and southern Papua.The agency also warned El Nino could affect various sectors, including agriculture, clean water supply, reservoir and irrigation management, forest and land fires, energy, public health, fisheries, and wider economic activities.