Jakarta – The Indonesian government continues to demonstrate its commitment to strengthening the national economic foundation through various stimulus programs directly aimed at enhancing public purchasing power. These strategies are designed to sustain economic growth momentum and ensure that household consumption remains a primary driver.
Ferry Irawan, Deputy I at the Coordinating Ministry for Economic Affairs, stated that domestic consumption remains the backbone of Indonesia’s economic growth. Data shows that in the first quarter of 2025, the national economy grew by 4.87%, largely driven by household consumption.
“There’s a risk of economic slowdown due to global factors, which is why we must actively stimulate our economy. Especially considering that 80% of our GDP is driven by domestic activity—this is what we must optimize,” said Ferry Irawan.
As a concrete effort to maintain purchasing power, the government has rolled out additional social assistance in the form of food assistance cards (kartu sembako) and direct food aid for June and July 2025. These policies aim to support lower- and middle-income groups, who are most vulnerable to global economic turbulence.
“Given recent developments, we need to accelerate our efforts. So in Q2, the government added new stimulus: first, a top-up for the food assistance card for June–July, currently in the disbursement process. Second, food assistance, which was not provided in Q1 due to high production, is now being distributed for two months,” Ferry explained.
In addition, the government is injecting liquidity into households by disbursing holiday bonuses (THR) and 13th-month salaries for civil servants. The private sector is also encouraged to participate, ensuring that consumer spending remains robust during the holiday season.
“We’re providing the money, offering discounts, and promoting domestic spending through transport, tourism, and shopping incentives. We’re also leveraging the holiday momentum through tourism programs,” he added.
On the empowerment front, the government continues to intensify the Kredit Usaha Rakyat (KUR) program to support micro, small, and medium enterprises (MSMEs). As of mid-June 2025, KUR disbursement reached IDR 118.7 trillion, benefiting over two million MSME actors.
“The goal is to safeguard and even increase the purchasing power of the middle and lower-income segments. The KUR program also helps strengthen the private sector’s role in the economy,” said Ferry.
Meanwhile, Member of Parliament (DPR RI) Commission XI, Bertu Merlas, expressed strong support for the government’s stimulus policy. He emphasized that the school holiday season offers a golden opportunity to stimulate the national economy through increased household spending.
“The government has prepared an economic stimulus package. We will closely monitor its implementation on the ground to ensure it effectively boosts national economic growth. The school holidays typically see a significant rise in consumer spending,” said Bertu.
He stressed that synergy between the central government, local authorities, and the legislature is vital to ensure the stimulus program is implemented thoroughly and reaches all segments of society.
“The stimulus that has been launched must be maximized with full support from all stakeholders so that our economic growth targets can be achieved,” Bertu asserted.
To date, the government has introduced six major stimulus measures, including public transportation discounts, toll road tariff reductions, social assistance, wage subsidies, and social security contribution subsidies.
“We must not allow these efforts to be half-hearted. Without proper oversight and active involvement, the program won’t reach its full potential,” Bertu concluded.
With strong policy coordination and targeted implementation, the government’s economic stimulus initiatives are expected to serve as a key engine in driving national recovery.
