Economic Stimulus Program Boosts People’s Purchasing Power While Maintaining Economic Turnover
By: Naura Astika)*
In facing global and domestic economic challenges, the Indonesian Government continues to roll out various economic stimulus programs as the main strategy to strengthen people’s purchasing power and maintain the stability of the national economic cycle.
This program is not merely a short-term solution, but is a form of fiscal intervention designed to ensure the economy continues to run in various conditions, including amidst global commodity price volatility, inflationary pressures, and the impact of international geopolitical uncertainty.
In practice, economic stimulus has proven to be a vital instrument in maintaining household consumption, which has been the main pillar driving Indonesia’s economic growth.
Finance Minister Sri Mulyani said the stimulus and various government program accelerations were issued to maintain economic growth so that it could remain close to five percent. The government ensured that the distribution of the second quarter economic stimulus package in 2025 would continue according to plan.
One of the most tangible forms of stimulus felt by the community is social assistance and subsidies given directly to vulnerable groups. This assistance comes in various forms, such as the Family Hope Program (PKH), Direct Cash Assistance (BLT), to energy subsidies such as electricity and fuel.
The presence of this kind of assistance is able to maintain the purchasing power of the lower groups who are often the most affected by economic pressures. By maintaining household consumption from this group, the wheels of the economy continue to turn, especially in the informal sector and MSMEs that are highly dependent on people’s daily expenses.
Not only that, the stimulus program also targets the micro, small, and medium enterprises (MSMEs) sector which is the backbone of the national economy. The government, through various schemes such as the People’s Business Credit (KUR) with low interest, loan restructuring, and tax incentives, seeks to maintain the sustainability of small community businesses.
This step is important, considering that MSMEs not only absorb a large number of workers, but also contribute more than 60 percent to Indonesia’s gross domestic product (GDP). When MSMEs get access to financing and relief, they not only survive, but also have the potential to grow and open up opportunities.
Gerindra Party Faction Chairman Budisatrio Djiwandono said this stimulus is the right step to boost people’s purchasing power, strengthen domestic consumption, and at the same time encourage regional economic equality. This stimulus package is designed to restore second-quarter economic growth to around 5 percent through fiscal interventions that directly target strengthening people’s purchasing power.
In addition to direct stimulus, the government has also adopted an expansionary fiscal policy such as accelerating state spending, especially for labor-intensive infrastructure projects. Projects such as the construction of roads, bridges, irrigation, and other public facilities, in addition to improving the quality of infrastructure, also open up employment opportunities for the surrounding community. This has a dual effect: the community earns income, while the infrastructure built encourages long-term economic connectivity. When people have income, purchasing power increases, and consumption becomes the driver of the national economy again.
It is important to realize that people’s purchasing power is closely correlated with the inflation rate and price stability. Therefore, in addition to distributing aid and incentives, the government also continues to maintain the availability and price stability of basic necessities through various policies, including market operations, strengthening logistics distribution, and price control through coordination with local governments. When the price of basic necessities is under control, people have certainty in managing their spending, which then strengthens their confidence to continue shopping and carrying out activities normally.
The effectiveness of economic stimulus also depends heavily on the synergy between the central and regional governments. In many cases, the success of implementing a stimulus program is largely determined by the ability of regional governments to accurately identify targets, efficiently distribute aid, and ensure that there is no overlapping policy.
Digitalization is also a crucial component in streamlining stimulus distribution. In recent years, the government has utilized digital systems such as bank accounts, social assistance applications, and local e-commerce platforms to reach beneficiaries. This not only speeds up aid distribution but also expands financial inclusion among lower-middle class communities.
However, the government continues to face the dynamics of implementation that are gradually being overcome through various strategic steps. The government continues to design stimulus schemes that are able to encourage community independence in the long term, but are able to mobilize active community participation to build their economic competitiveness. Therefore, sustainable stimulus programs are ideally combined with empowerment programs, skills training, and improving the quality of human resources. Thus, the community is not only assisted in terms of consumption, but also empowered in terms of production and innovation.
Overall, the economic stimulus program has become an important anchor for national social and economic stability, especially in difficult times. By maintaining people’s purchasing power and ensuring that money continues to circulate in various levels of society, the government has not only prevented economic slowdown, but also prepared a stronger foundation for inclusive and sustainable long-term economic growth. With management that has been carried out transparently, adaptively, and focused on empowerment, this stimulus continues to be a vital tool, and it will continue to be a vital tool in ensuring that the Indonesian economy remains resilient in facing various challenges in the future.
)* Strategic Issue Observer
