Economic Equalization Stimulus in Q1 2025, Government Accelerates THR and Social Assistance
By: Dzul Ilmi Muis
The government has taken strategic steps to encourage economic growth by accelerating the disbursement of holiday allowances (THR) and various social assistance programs. This policy is part of the eight main steps outlined by President Prabowo Subianto to stimulate economic equalization in the first quarter of 2025.
President Prabowo emphasized that the government continues to implement various policies to maintain the purchasing power of the people. One of the concrete steps taken is the acceleration of social assistance distribution, including the Family Hope Program (PKH), the Food Card Program, and the Village Direct Cash Assistance (BLT-DD). With this policy, middle and lower-income communities can benefit more quickly to meet their daily needs.
Additionally, the disbursement of THR for civil servants (ASN) and private sector workers is scheduled to occur earlier in March 2025. This step aims to boost the circulation of money in the community ahead of Ramadan and Idul Fitri, so that the economy in various sectors, including trade and services, can move more quickly.
The Ramadan and Eid stimulus programs, including flight ticket discounts, toll road fare reductions, and national shopping promotions, will also be optimized to strengthen the impact of these policies.
The increase in the provincial minimum wage (UMP) set for 2024 is expected to improve people’s purchasing power. With higher wages, household consumption, which is a major driver of national economic growth, is expected to see significant improvement.
The government is also preparing an economic stimulus package in the form of tax incentives for property purchases and electric vehicles, tax subsidies for hybrid vehicles, and income tax reductions for labor-intensive sectors. All of these steps are aimed at supporting the sustainability of economic growth across various sectors.
In the agricultural sector, national rice production has experienced a significant increase. President Prabowo emphasized that the latest reports show better harvest results compared to previous years.
With sufficient food availability, the stability of staple food prices is expected to be maintained, minimizing inflationary pressures that could erode people’s purchasing power.
The Directorate General of Regional Administration, Ministry of Home Affairs, has also played a role in supporting the economic equalization agenda by drafting regulations related to Urban Service Standards (SPP).
Urban service standardization is carried out to ensure the public’s access to quality and sustainable public facilities. In the process, data-based measurement methods and public perceptions are used to ensure that the outcomes truly meet the real needs in the field.
Local governments are expected to integrate these standards into the Urban Management Implementation Plan (RP2P), which is part of the Regional Medium-Term Development Plan (RPJMD).
At the village level, Minister of Village and Disadvantaged Area Development, Yandri Susanto, emphasized the importance of accelerating village development as part of the economic equalization vision.
Collaboration with various parties, including the Indonesian National Armed Forces (TNI), is optimized to strengthen village food security through the Village Development National Army Program (TMMD).
With a minimum allocation of 20 percent of Village Fund for food security, villages in Indonesia are expected to increase local food production capacity and reduce dependence on imports.
The Free Nutritious Meals (MBG) program also becomes a priority in the economic equalization strategy. The government collaborates with Village-Owned Enterprises (BUMDes) to provide food raw materials to support the program.
With this approach, economic benefits are not only felt by the aid recipients but also by farmers and businesses in villages that supply food needs. The government also encourages the development of thematic villages focusing on certain commodity production, such as eggs, chicken meat, fish, and vegetables, to strengthen the domestic food supply chain.
In efforts to improve the quality of life in rural communities, the Ministry of Village collaborates with various institutions to ensure that Village Funds are managed transparently and accountably.
Strict supervision is carried out through cooperation with the Financial Transaction Reports and Analysis Center (PPATK), the Attorney General’s Office, and the Indonesian National Police. Furthermore, the government encourages the establishment of complaint centers in village offices to reduce the incidence of violence against women and children and create a more family-friendly environment.
The sustainability of village development is also strengthened through the “No Residue” program, aimed at creating waste-free villages. Partnerships with the Ministry of Environment are optimized to ensure that waste management systems in villages run more effectively, minimizing negative environmental impacts.
The various policies implemented in the first quarter of 2025 demonstrate the government’s commitment to creating more equitable economic distribution. With the acceleration of THR, social assistance, and other economic stimuli, people’s purchasing power is expected to improve, ensuring that economic growth is maintained at an optimal level. The strategic steps taken are not only short-term measures but also designed to build a stronger and more sustainable economic foundation for the future.
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The author is a Social Economic Observer
