Economic Stimulus Program in the Form of Social Assistance Maintains People’s Purchasing Power
Jakarta, – The government continues to strengthen the community’s resilience to inflationary pressures and global economic turmoil through economic stimulus policies. One of the main instruments implemented is the distribution of additional social assistance (bansos) in the form of cash and rice to poor and vulnerable groups.
Head of the Central Statistics Agency (BPS) Amalia Adininggar Widyasanti said that the process of integrating and updating DTSEN has been ongoing since February 3, 2025. In addition to validating various data, the process also includes field verification carried out through collaboration between BPS, the Ministry of Social Affairs (Kemensos), and the Financial and Development Supervisory Agency (BPKP).
“Of the 20.3 million KPM (Beneficiary Families), currently there are 16.5 million who have been verified by BPKP. And of the 16.5 million, 14.3 million are indeed in deciles 1 – 4 and have begun to be distributed by the Minister of Social Affairs as of the end of May 31,” he said.
The distribution of social assistance is part of the national economic stimulus package launched by the government to maintain people’s purchasing power amidst global economic uncertainty. In addition to social assistance, the government is also providing Wage Subsidy Assistance (BSU) of IDR 300,000 per month for two months for 17 million workers with salaries below IDR 3.5 million and actively registered as BPJS Ketenagakerjaan participants.
The Ministry of Finance noted that the government allocated a budget of IDR 18.47 trillion to expand the scope of social assistance during the period of June to July 2025. This scheme consists of cash assistance of IDR 200,000 and 10 kg of rice per month, which will be distributed to around 18.5 million Beneficiary Families (KPM).
Finance Minister Sri Mulyani Indrawati said in a press conference last week that this stimulus is a form of government intervention that is temporary but strategic in maintaining consumption among lower-class people and fixed-income groups.
“Thickening social assistance through social assistance and BSU is important to prevent weakening of household consumption, which is one of the main pillars of national economic growth,” said Sri Mulyani.
Meanwhile, Social Minister Syaifullah Yusuf revealed that the social assistance distribution process is now more measurable and targeted thanks to the updating of beneficiary data based on welfare deciles. The government has collaborated with local governments and distributing banks to ensure that the disbursement of social assistance is fast, transparent, and accountable.
“Distribution has been carried out in stages since June 5 and is targeted to be completed before mid-July 2025,” he explained.
This comprehensively designed economic stimulus is expected to not only maintain people’s purchasing power, but also encourage consumption activities at the local level, especially the micro, small and medium enterprises (MSMEs) sector. The government is optimistic that this policy will be an effective fiscal cushion in maintaining the momentum of economic growth until the end of the year.
The distribution of aid uses a more accurate data-based approach. The government ensures that all social assistance in this program refers to the National Socio-Economic Single Data (DTSEN) which has been integrated since the beginning of the year.
