JAKARTA – The Prabowo-Gibran administration has launched a series of stimulus measures to promote economic growth and equity in 2025. Indonesian President Prabowo Subianto announced eight strategic policies aimed at increasing public purchasing power and accelerating economic growth in the first quarter of 2025.
“The government will continue to implement strategic policies to drive economic growth,” said President Prabowo.
The first policy relates to the increase in the 2024 provincial minimum wage (UMP), which is expected to significantly improve public purchasing power.
Next, social assistance optimization will be carried out by accelerating the distribution of 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).
The government will also expedite the disbursement of holiday allowances (THR) for civil servants (ASN) and private-sector workers in March 2025.
In addition, various Ramadan-Lebaran 2025 stimulus programs are being prepared, such as discounts on flight tickets, toll fare reductions, and shopping promotions from various national programs.
Various economic stimulus packages will also be provided through electricity tariff discounts, property and electric vehicle tax incentives, as well as subsidies for electric and hybrid vehicle taxes.
The government will cover income tax (PPh) for labor-intensive sectors to enhance industrial competitiveness.
The Free Nutritious Meal Program will be optimized as an effort to improve public nutrition consumption.
Moreover, the acceleration of People’s Business Credit (KUR) distribution will provide faster access to financing for small business owners.
“We will optimize thematic villages to support the supply chain for the nutritious lunch program,” said Minister of Villages and Development of Disadvantaged Regions, Yandri Susanto.
In the agricultural sector, the government is ensuring an increase in rice production to maintain food price stability.
“There have been reports that rice production has increased significantly,” said Prabowo.
The Directorate General of Regional Administrative Development, Ministry of Home Affairs, is also drafting a Ministerial Regulation on Urban Service Standards (SPP) to ensure economic equity and social welfare.
“Urban services must ensure social justice, economic welfare, and environmental sustainability,” said Dr. Drs. Amran, MT, Director of Regions, Urban Areas, and National Borders at the Ministry of Home Affairs.
The government is also collaborating with various parties in strengthening rural development, including the Indonesian National Military (TNI), to ensure optimal program implementation.
“With this MoU, we will strengthen cooperation to support food security, with a minimum of 20 percent of Village Fund allocated to this sector,” explained Yandri Susanto.
In the future, cooperation with various parties will continue to expand to ensure rural development aligns with the vision of economic equity and poverty alleviation in Indonesia.
