Sitharaman said the proposed fund would help the government address disruptions such as supply chain interruptions and sudden economic stresses while maintaining stability in public finances.

The stabilisation fund is intended to provide the government with additional fiscal headroom during periods of volatility in global markets or trade flows, Sitharaman told lawmakers.The proposal comes as the government seeks parliamentary approval for gross additional spending of 2.81 trillion rupees.

According to Sitharaman, part of the additional expenditure will be offset by savings and higher receipts from various ministries and departments.She said the proposed spending adjustments would not increase the government’s overall expenditure beyond the levels outlined in the federal budget.

Sitharaman also proposed additional fertiliser subsidies amounting to about 192.30 billion rupees to cover higher spending under the nutrient-based subsidy policy and payments for urea subsidies.

India’s fertiliser subsidy bill has come under pressure following disruptions to supply routes linked to tensions involving Iran, particularly around the Strait of Hormuz, a key corridor for global fertiliser shipments.

The disruption has pushed up prices for crop nutrients such as urea and ammonia, increasing import costs for major buyers including India.

Sitharaman said the government would ensure there was no shortfall in funds for fertiliser subsidies for farmers.

The policy was signed in Jakarta by seven ministers and is designed to guide the use of digital technology and AI across formal and informal educational institutions, from early childhood education to universities.

Officials said the measure aims to balance the potential benefits of digital innovation with safeguards to protect children and teenagers from risks associated with prolonged exposure to digital platforms.

Indonesia has one of the world’s largest online populations, with nearly 230 million internet users in 2025, according to a survey by the Association of Indonesian Internet Service Providers. Generation Alpha and Generation Z together account for nearly half of that figure.

Government officials said Indonesian children spend about 7.5 hours per day on screens, raising concerns about the social and cognitive effects of prolonged digital engagement.

Pratikno, Indonesia’s Coordinating Minister for Human Development and Cultural Affairs, said the decree was introduced partly in response to growing concerns about mental health issues among young people.

“There are a lot of factors but the number of teenagers with mental health issues are high and continue to increase, and one of the suspected triggers that have been proven academically is the uncontrolled, unmitigated use of digital technology,” Pratikno said.

He added that excessive reliance on digital tools could weaken brain activity and reduce critical thinking, cognitive development and reflective abilities among students.

The policy also seeks to promote responsible digital use and strengthen digital literacy among young Indonesians.

Meutya Hafid, Minister of Communication and Digital Affairs, said the initiative was intended to ensure that children are able to use technology in a way that reflects their level of readiness.

“Indonesia has a significant number of children using the internet. Therefore, we must ensure that they are not only a target market for the technology industry, but also able to utilize technology according to their readiness,” she said.

The decree was also signed by officials including Higher Education, Science and Technology Minister Brian Yuliarto and Primary and Secondary Education Minister Abdul Mu’ti, reflecting a cross-government approach to regulating digital technology in the education sector.