By: Astrid Widia )*
Facing the challenging dynamics of the global economy, the government has reaffirmed its commitment to maintaining fiscal stability by ensuring that the Wage Subsidy Assistance (BSU) program will not burden the country’s debt. This policy shows that the stimulus being rolled out remains within the corridor of prudence, by carefully considering long-term fiscal sustainability. The BSU program, which is part of the economic stimulus package worth IDR 24.44 trillion in the second quarter of 2025, is designed to support people’s purchasing power, especially workers with low to middle incomes. However, unlike the general perception that social assistance programs risk increasing the country’s debt, the government emphasized that the BSU funding scheme this time does not come from new loans.
The Director General of Economic and Fiscal Strategy at the Ministry of Finance, Febrio Kacaribu, explained that the budget for the stimulus came from the management of state spending, which in total was set at IDR 3,621 trillion in the 2025 State Budget.
According to him, there is no government plan to rely on additional debt, because efficiency and budget reallocation have been carried out long ago to accommodate various strategic needs. The stimulus package launched in conjunction with the school holidays includes five main policies. Some of the policies proposed include discounts for transportation modes such as trains, airplanes, and ferry boats, with a total budget of Rp 940 billion.
In addition, the government also allocated IDR 650 billion for toll road tariff discounts, strengthened social assistance and the Wage Subsidy Assistance (BSU) program with funds reaching IDR 110.72 trillion, and extended the contribution cuts in the Work Accident Insurance (JKK) program worth IDR 200 billion. All of these policies are designed to have a direct impact on public consumption, while maintaining economic stability from the demand side.
Febrio also explained that of the total of Rp 24.44 trillion, Rp 23.59 trillion came from the central government budget through the APBN, and the remaining Rp 850 billion came from non-APBN sources. The allocation structure clearly shows that the provision of stimulus is not done by relying entirely on the addition of new debt.
Even in terms of debt management, Indonesia is still considered to be in a safe position, with a debt ratio to Gross Domestic Product (GDP) of 39 percent. This is still lower than many other countries facing higher debt pressures.
Foreign investor confidence also remains high in Indonesia’s economic stability. Data from Bank Indonesia shows that in the period 23-25 June 2025, there was an inflow of foreign capital into the domestic financial market worth Rp 2.83 trillion.
Of that amount, Bank Indonesia Rupiah Securities (SRBI) recorded an inflow of Rp3.68 trillion, while Government Securities (SBN) also recorded an additional Rp1.29 trillion. Despite the outflow of funds from the stock market of Rp2.14 trillion, Indonesia remains in a safe position in terms of Government Securities (SBN) instruments, and is even seen as one of the developing countries with the best fiscal stability and credibility.
Febrio also emphasized that the dominance of domestic investors in SBN ownership, which has now reached 85 percent, is an important factor in maintaining national economic resilience. The remaining 15 percent is owned by foreign investors. This composition shows that domestic economic resilience is increasingly strong because it relies on domestic support.
Interestingly, public involvement is also increasing in the country’s financial market. Even retail segments, such as housewives and students, have now begun to engage in purchasing SBN through a single identity system. With affordable purchase amounts starting from IDR 1 million, public participation in state financing is increasingly widespread.
One of the main components of this stimulus is the 2025 Wage Subsidy Assistance (BSU) program. This program is designed to protect the purchasing power of workers affected by economic pressures by targeting 17.3 million workers who earn below IDR 3.5 million per month or below the Provincial/District/City Minimum Wage.
Minister of Manpower Yassierli said that in the first phase, 2,450,068 workers had received assistance from a total of 3,697,836 designated recipients. Currently, around 4.5 million prospective recipients of assistance for the second phase are still undergoing data verification.
The government also targets that the distribution of aid can be carried out quickly and precisely through a direct disbursement system to each recipient’s account. The BSU program is not limited to formal sector workers, but also touches vulnerable groups such as honorary teachers. A total of 288,000 teachers under the auspices of the Ministry of Primary and Secondary Education and 277,000 teachers in the Ministry of Religious Affairs are recorded as recipients of aid worth IDR 600,000 for a two-month period, namely June and July 2025.
Finance Minister Sri Mulyani confirmed that a budget of Rp10.72 trillion has been prepared through the APBN specifically to fund the implementation of BSU this year. She added that the target of this program is honorary workers and teachers who have incomes below Rp3.5 million or below the applicable minimum wage.
The recipient criteria refer to BPJS Employment data, with the main requirements such as NIK ownership, Indonesian citizen status, being an active participant until April 2025, and not currently receiving other social assistance such as PKH, and not being a civil servant, TNI, or Polri.
With a measurable mechanism, the 2025 economic stimulus is believed to be able to be an effective buffer for the national economy without having to increase the burden of state debt. The government has shown that responsible fiscal management can still run in line with efforts to encourage economic growth and maintain public welfare. Support from all elements of society is needed so that programs such as the 2025 economic stimulus can run optimally and provide real benefits for shared welfare.
)* The author is a public policy observer
