Government’s Commitment to Ease Workers’ Burden Through Wage Subsidy Assistance (BSU)

By: Inge Zinia *)

The Indonesian government has once again demonstrated its commitment to protecting workers and alleviating their economic burden through the Wage Subsidy Assistance (BSU) program in 2025. This initiative is a tangible form of the state’s support for low-income workers affected by economic pressures.

The Ministry of Manpower (Kemnaker) has confirmed that BSU disbursement will commence shortly, following a complex process of data verification and matching. As of mid-June 2025, four million workers have passed the verification process out of the total target of 17.3 million recipients. This verification stage is deemed crucial to ensure that the assistance reaches the rightful beneficiaries.

During a public discussion titled “Double Check” held in Jakarta, the Head of the Public Relations Bureau of Kemnaker, Sunardi Manampiar Sinaga, stated that the entire validation process has been completed and is now in the final stage before distribution begins. He emphasized that recipients are active participants in the BPJS Employment program who have paid contributions consistently up to April 2025. The subsidy, amounting to IDR 600,000 per recipient, will be distributed in a lump sum covering two months.

This year’s BSU program not only targets formal sector workers but also includes honorary teachers and educators in Early Childhood Education (PAUD). This group is reached through a collaboration between Kemnaker and the Ministry of Primary and Secondary Education to ensure more equitable distribution. The total budget allocated by the government for this program reaches IDR 10.72 trillion and is part of a national stimulus package aimed at sustaining household consumption and strengthening people’s purchasing power.

Minister of Manpower Yassierli reported that the first phase of BSU has already been distributed to more than 2.4 million workers, while around 1.2 million are still in the disbursement process. The aid is being distributed through banks under the Association of State-Owned Banks (Himbara), including BRI, BNI, Mandiri, BTN, and Bank Syariah Indonesia (BSI) for the Aceh region. He added that the second phase will soon follow after validating the data of 4.5 million prospective recipients.

The BSU 2025 program is regulated under Minister of Manpower Regulation No. 5 of 2025, which updates the previous regulations. The criteria for recipients are strictly defined to ensure the program’s accuracy. Eligible workers must be Indonesian citizens with valid national ID numbers (NIK), active BPJS Employment members up to April 2025, and earn no more than IDR 3.5 million per month. The program does not apply to civil servants (ASN), members of the TNI/Police, or recipients of other social assistance programs such as the Family Hope Program (PKH).

The government has also provided official channels for workers to check their BSU eligibility status, including through the Ministry of Manpower and BPJS Employment websites, the Jamsostek Mobile (JMO) application, and coordination with their respective company HR departments. These accessibility measures are intended to prevent administrative barriers to disbursement and encourage workers to actively update their personal and banking information.

At the regional level, enthusiasm for the program is evident. The Manado City Manpower Office, for instance, has begun socializing BSU to low-income workers. Head of the Manado Manpower Office, Paul Sualang, emphasized that the IDR 600,000 subsidy would be transferred directly to the recipients’ bank accounts and that data collection is based on active BPJS Employment participation. The disbursement is carried out transparently and does not involve employers, ensuring that the full amount reaches the recipients without deductions.

Meanwhile, in Central Sulawesi Province, the BPJS Employment Branch in Palu has submitted approximately 183,856 worker data entries to Kemnaker for verification. Head of BPJS Employment Central Sulawesi, Luky Julianto, expressed hope that all submissions will be approved so that eligible workers can benefit from the program. He also noted that this government initiative serves as a motivation for companies to actively register their employees in the national social security system.

Support for the BSU program has also come from local legislative bodies. Commission IV of the Regional House of Representatives (DPRD) of Pringsewu Regency has expressed strong support for the program, though it acknowledges challenges in reaching informal sector workers, such as small traders and unregistered MSME operators. Commission IV Chairman Agus Irawan suggested that to ensure longer-term impact, the government should combine the BSU program with economic empowerment strategies such as skills training and business coaching.

In a broader context, BSU is not merely a form of social assistance but part of a national economic recovery strategy. By boosting consumption among low-income groups, the BSU contributes significantly to national economic growth, particularly by strengthening the domestic sector.

Overall, the program reflects the government’s responsiveness to the needs of its people. Amid various global and domestic economic challenges, BSU stands as a symbol of the state’s sincere presence for its citizens. It is proof that worker protection is not just rhetoric but a concrete and ongoing commitment.

*) Government Policy Analyst

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