Government Prepares Stimulus to Anticipate El Nino Impact

The government is preparing a stimulus package for the second half of 2026 to anticipate the impact of El Nino, which has been active since June and could affect various sectors. Finance Minister Purbaya Yudhi Sadewa said President Prabowo Subianto has ordered the stimulus to be prepared as a precautionary measure against the potential economic effects of El Nino. “The President has ordered the preparation of this programme,” Purbaya said during a media briefing in Jakarta on Wednesday. However, he noted that the government has not yet determined the budget value or programme details as discussions are still ongoing. Purbaya explained that the Ministry of Finance is still awaiting proposals from technical ministries before a decision is made. “Once it is finalised, we will implement it. But it is still being discussed now,” he said. The Meteorology, Climatology and Geophysics Agency (BMKG) has stated that El Nino has reached a strong category and could still intensify, risking a drier and longer dry season in several parts of Indonesia. BMKG Head Teuku Faisal Fathani said on Tuesday (4/8) that monitoring results show an ENSO index of +1.59, placing it in the strong category. According to BMKG, rainfall from August to September 2026 is expected to be in the low to very low category before the rainy season begins in mid-October 2026. The impact is particularly felt in regions south of the equator, such as East Nusa Tenggara, West Nusa Tenggara, Bali, Java, southern Sumatra, and southern Papua. BMKG also warned that El Nino could affect various sectors, including agriculture, clean water supply, reservoir and irrigation management, forest and land fires, energy, fisheries, and general economic activity.