Eight Strategic Policies of President Prabowo Effectively Promote Economic Equalization in Indonesia
By: Zayn Elvano
The government continues to demonstrate a strong commitment to promoting economic equalization throughout Indonesia. President Prabowo Subianto has announced eight strategic policies aimed not only at increasing national economic growth but also at ensuring that their benefits are felt by all levels of society. These policies are designed to address economic challenges and accelerate the achievement of more equitable welfare across the country.
The first step taken was to raise the provincial minimum wage (UMP) in 2024. This wage increase is expected to boost domestic consumption and strengthen overall economic growth. The government understands that strengthening purchasing power is a key factor in creating a sustainable economic balance. This policy also provides a significant boost to the purchasing power of society, particularly for workers in the formal sector.
In addition, the optimization of social assistance has become a key policy focus. Programs such as the Family Hope Program (PKH), the Food Card Program, the Smart Indonesia Program (PIP), the Smart Indonesia Card (KIP), and the Village Direct Cash Assistance (BLT-DD) will have their disbursements expedited. With this acceleration, those in need can immediately benefit, effectively reducing economic disparities.
Another highly appreciated measure is the early disbursement of holiday allowances (THR) for civil servants (ASN) and private-sector workers. The disbursement, scheduled for March 2025, gives the public more time to prepare for the upcoming Eid celebrations. This policy not only increases the welfare of workers but also helps stimulate the economy, especially in the trade and services sectors.
The economic stimulus during Ramadan and Eid 2025 also represents a strategic breakthrough. The government is offering various incentive programs, such as discounts on flight tickets, toll fare reductions, and shopping promotions through programs like Harbolnas 2025, EPIC Sales 2025, and BINA Discount 2025.
Additionally, the free homecoming program initiated by the Ministry of Tourism and State-Owned Enterprises (BUMN) is a tangible manifestation of the government’s attention to supporting public mobility while also stimulating local economies.
An equally important policy is the provision of an economic stimulus package that includes electricity tariff discounts, tax incentives for property and electric vehicle purchases, as well as tax subsidies for electric and hybrid vehicles. The government will also cover income taxes (PPh) for labor-intensive sectors. This policy will help industries operate more efficiently and create new job opportunities, further accelerating economic equalization.
The Free Nutritious Meals program has also received significant attention, as it is seen as a means of improving public nutrition consumption. The government ensures the program’s effectiveness by involving various stakeholders, including Village-Owned Enterprises (BUMDes). This step is expected to not only improve public health but also provide a positive economic impact at the village level.
Furthermore, the accelerated disbursement of the People’s Business Credit (KUR) is a strategic solution to promote the development of small and medium enterprises (SMEs). With easier access to financing, business owners can expand their businesses more quickly and create more jobs. The government is committed to ensuring that this policy is implemented well so that its benefits are felt by a broader segment of the population.
Lastly, the significant increase in rice harvest yields has a positive impact on food price stability. This success is a result of integrated policies in the agricultural sector, including support for farmers in the form of subsidies and easier access to modern agricultural technology. The government continues to ensure that food production remains stable to support national food security.
The Director of Regional, Urban, and Border Areas at the Ministry of Home Affairs, Dr. Drs. Amran, MT, emphasized that the policies being implemented align with the principles of sustainable development. The Urban Service Standards (SPP) currently being developed aim to improve the quality of services in various sectors, including infrastructure and accessibility. The implementation of this policy is expected to provide long-term benefits for public welfare.
Minister of Village and Disadvantaged Area Development (Mendes PDT) Yandri Susanto also highlighted the importance of collaboration with various institutions, including the Indonesian National Armed Forces (TNI), in strengthening village development. Through the allocation of Village Funds supporting the food security sector, the government ensures that economic growth occurs not only in major cities but also in rural areas.
Additionally, cooperation with the Ministry of Environment in creating waste-free villages through the “No Residue” program demonstrates the government’s commitment to environmental protection while promoting a green economy.
The Ministry of Village is also collaborating with the Ministry of Creative Economy to develop the creative economy potential in villages, which could serve as a new source of income for local communities.
The strategic policies implemented by President Prabowo Subianto reflect a broad vision of achieving inclusive economic equalization. The synergy between the central and regional governments, along with support from various sectors, is crucial to ensuring the success of these programs. With the right policies and effective execution, Indonesia is moving toward a more equitable economic future for all its citizens.
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The author is a contributor at the Pertiwi Institute
