By: Zaki Ramadhan )*
The distribution of social assistance that the government has intensified is no longer considered merely as an expenditure, but rather as a smart investment strategy in encouraging economic growth and maintaining people’s purchasing power.
Amidst global economic uncertainty and slowing purchasing power after major consumption moments such as Eid, the presence of various forms of stimulus ranging from social assistance, wage subsidies, to transportation fare cuts can be believed to be able to become a vital support in maintaining national economic stability.
National Economic Council member Arief Anshory Yusuf emphasized that social assistance disbursed by the government should not be misinterpreted as a mere budget burden. In fact, he said social assistance is a form of strategic investment to boost economic growth in the future.
The term “cost” is considered inappropriate in this context, because the government is investing social capital whose results can be enjoyed in the form of sustainable economic growth. Arief also assessed that the current government approach is in line with President Prabowo’s Astacita which places public welfare as the main priority in national development.
According to him, government steps such as the free nutritious meal program (MBG), economic deregulation efforts, and the launch of the second quarter economic stimulus package are real forms of commitment towards people’s welfare. This approach reflects a vision that focuses on human development as the foundation of growth. By ensuring that people have access to food, jobs, and other basic services, the government is indirectly strengthening the foundation of the national economy.
Meanwhile, from a fiscal perspective, the Director General of Economic and Fiscal Strategy at the Ministry of Finance, Febrio Kacaribu, said that the government’s commitment to social protection has been clearly reflected in the 2025 State Budget (APBN) posture.
Of the total budget of Rp3,621.3 trillion, around Rp503.2 trillion or 13.9 percent is allocated specifically for social protection programs. This reflects the government’s strong desire to provide an economic safety net to the community, especially vulnerable groups affected by economic conditions.
In addition, the government has also set a budget of Rp218.5 trillion or six percent of the APBN to support the health sector. This step emphasizes the awareness that healthy economic development must also be supported by a physically and mentally healthy society. According to Febrio, the budget is not only for regular health programs, but also to strengthen the national health system which is still being tested by global dynamics.
In an effort to strengthen public consumption, the government has also released a second-quarter economic stimulus package with a total budget of IDR24.4 trillion. In the details of this package, the government allocated IDR0.94 trillion for transportation discounts such as train and ship tickets, IDR0.65 trillion for toll tariff discounts, and IDR0.2 trillion for the extension of work accident insurance (JKK) contribution discounts. No less important, the thickening of social assistance by IDR11.93 trillion and wage subsidy assistance (BSU) worth IDR10.72 trillion are expected to provide a significant boost to people’s purchasing power.
The importance of maintaining consumption momentum was also conveyed by the Coordinating Minister for Economic Affairs, Airlangga Hartarto. He ensured that the budget for BSU had been allocated in the 2025 State Budget, and the assistance scheme had been adjusted to the current fiscal conditions.
According to him, flexibility in this adjustment is important so that assistance remains on target and effective in maintaining the stability of public consumption. Airlangga emphasized that the stimulus in the middle of the year is very crucial because it is a kind of “middle support” to keep the wheels of consumption from stopping after the peak phase at the beginning of the year.
Policies such as wage subsidies not only benefit low-wage workers, but also have a positive impact on the business world, especially labor-intensive sectors that are the backbone of employment.
By maintaining workers’ purchasing power, demand for goods and services is maintained, which ultimately maintains business continuity and employment. In this context, proactive fiscal policy plays a major role as a stabilization tool that works in both the short and long term.
These concrete steps also reflect the government’s increasingly mature understanding of socio-economic dynamics at the grassroots level. Not just a populist policy, social assistance and stimulus are now emerging as the main pillars in efforts to maintain social stability and accelerate economic recovery post-pandemic and amid ongoing global pressures.
All these approaches demonstrate the synergy between prudent fiscal planning and a strong social mission. The government does not only think in terms of numbers and budgets, but also considers the impact on the welfare of the wider community. The combination of social protection, health support, and economic stimulus forms a mutually reinforcing policy ecosystem.
For the community, the presence of this policy should be an encouragement to be more active in participating in economic activities. With the various assistance provided, the opportunity to rise from economic decline is increasingly wide open. The community is not only a beneficiary, but also becomes part of the national economic recovery and development process.
Ultimately, social assistance is not just a manifestation of state concern, but also a strategic instrument in accelerating more equitable and just development. This policy requires mutual support and understanding, so that its benefits can be felt more widely and sustainably. If managed properly and transparently, the distribution of social assistance and economic stimulus can be a strong foundation for more inclusive and resilient growth in Indonesia.
)* The author is a contributor to LSISI