Encouraging Economic Equity in 2025, President Prabowo Announces 8 Strategic Policies

JAKARTA – Indonesian President Prabowo Subianto announced eight strategic policies to promote economic equity in the first quarter of 2025.
These policies are designed to improve public purchasing power and accelerate national economic growth.
“The government will continue to implement strategic policies to encourage economic growth,” said Prabowo at the Merdeka Palace in Jakarta.
The increase in the provincial minimum wage (UMP) is the first step, expected to strengthen workers’ purchasing power.
Additionally, the government is accelerating the distribution of social assistance, including the Family Hope Program (PKH), Basic Food Cards, Indonesia Smart Program (PIP), Indonesia Smart Cards (KIP), and Direct Cash Assistance for Village Funds (BLT-DD).
In preparation for the Idulfitri holiday, the government will disburse holiday allowances (THR) for civil servants (ASN) and private-sector workers earlier in March 2025.
Furthermore, the government is preparing various Ramadan and Lebaran stimulus programs, such as discounts on flight tickets, toll fare reductions, and shopping promotions through the 2025 Harbolnas program, 2025 EPIC Sales, and 2025 BINA Discount.
Food price stability is also a key priority.
Economic stimulus will also be provided in the form of electricity tariff discounts, tax incentives for property and electric vehicle purchases, as well as subsidies for electric and hybrid vehicle taxes.
Income tax (PPh) for labor-intensive sectors will be covered by the government to encourage investment.
The free nutritious meal program is one of the priority policies aimed at improving public nutritional consumption.
Additionally, the acceleration of the distribution of People’s Business Credit (KUR) will provide easier access to financing for small businesses.
Prabowo also highlighted the significant increase in national rice production.
“There have been reports that rice production has significantly increased,” he emphasized. The government ensures that food supply remains stable to maintain rice prices in the market.
The Ministry of Home Affairs supports economic equity through the preparation of Urban Service Standards (SPP).
Dr. Drs. Amran, MT, Director of the Regions, Urban Areas, and National Borders at the Ministry of Home Affairs, emphasized that urban policies must guarantee social justice, economic welfare, and environmental sustainability.
“Urban services in Indonesia need to apply sustainable principles in urban management,” he said.
Meanwhile, the Minister of Villages and Development of Disadvantaged Regions (Mendes PDT), Yandri Susanto, stressed the importance of rural economic development as part of the efforts to achieve economic equity.
“All of this cooperation is part of the government’s efforts to realize President Prabowo’s Sixth Vision, which is to build Indonesia from the villages,” he explained.
The various policies announced are expected to accelerate economic recovery and create equitable prosperity for all Indonesians.