Jakarta – The government has announced an economic stimulus package designed to maintain people’s purchasing power and support the growth of micro, small and medium enterprises (MSMEs) amidst global economic challenges. This policy is expected to strengthen the competitiveness of MSMEs which are the backbone of the national economy.
Coordinating Minister for Economic Affairs Airlangga Hartarto explained that this stimulus includes tax incentives, basic food assistance, and capital support for small business actors.
“This stimulus package is a concrete step to ease the burden on the community while encouraging MSMEs to remain competitive,” he said.
In the package, the government provides an extension of the 0.5 percent final income tax facility for MSMEs until 2025. In addition, MSMEs with a turnover of less than IDR 500 million per year are completely exempt from tax. This policy aims to ease the burden on business actors and open up wider opportunities for them to develop.
Finance Minister Sri Mulyani Indrawati added that this incentive not only targets MSMEs but also labor-intensive industries.
“The government wants to create a balance between economic sustainability and the needs of the community,” he said.
In addition, interest subsidies of up to 5 percent for machine revitalization are also prepared to increase the productivity of the industrial sector.
This support was appreciated by various parties, including Member of Commission VII of the Indonesian House of Representatives, Novita Hardini. She considered this policy strategic to grow the MSME sector
“MSMEs still face challenges such as capital and marketing. With this step, MSMEs can make a significant contribution to regional economic growth,” he said.
In addition to fiscal incentives, the government is also providing assistance in the form of a 50 percent electricity discount for customers with power up to 2,200 VA and the distribution of food assistance in the form of 10 kg of rice per month for 16 million families. This policy will last for two months in early 2025 to maintain people’s purchasing power and control inflation.
Another stimulus presented is a reduction in Luxury Goods Sales Tax (PPnBM) for electric and hybrid vehicles, which is expected to help encourage the growth of the environmentally friendly transportation sector.
This incentive is also relevant in encouraging technology-based MSMEs to adapt to sustainable economic trends.
With incentive projections reaching IDR265.6 trillion, the government is optimistic that this stimulus package will have a positive impact, both in maintaining economic stability and supporting the competitiveness of business actors.
Full support from the government and the DPR reflects the commitment to make MSMEs the main driver of national economic recovery.