By: Bagus Pratama
The Indonesian government’s efforts in rolling out a series of economic stimulus measures for mid-2025 are seen as effective in maintaining the stability of the rupiah against the US dollar, while also sustaining household purchasing power and the continuity of the real sector amid global economic challenges.
Through six strategic policies implemented from June to July 2025, the government has targeted not only domestic consumption but also provided protection for workers in the informal and labor-intensive sectors against the threat of massive layoffs.
Ariston Tjendra, President Director of PT Doo Financial Futures, believes that the government’s stimulus policies have significant potential in sustaining the rupiah’s value, despite upward pressure from a strengthening US dollar.
He noted that these measures can help prevent excessive depreciation of the national currency, especially by directly supporting household consumption. As domestic consumption strengthens, the demand for rupiah tends to stabilize, which in turn helps to mitigate volatility in the foreign exchange market.
The government has outlined six key stimulus programs, each aimed at comprehensive economic recovery. The first is transportation-related incentives. A 30% discount on economy-class train tickets is provided for 2.8 million passengers, while VAT subsidies for airline tickets target 6 million passengers.
In the maritime sector, fare discounts of up to 50% will benefit around half a million passengers. The total allocated budget for these transportation incentives is Rp0.94 trillion, which also supports MSMEs in tourism destinations during the school holiday season.
The second policy includes toll road fare discounts in collaboration with toll road operators. A 20% discount will be applied to various toll routes during the 14 days before and after the school holiday period, with an estimated 110 million vehicles set to benefit. This demonstrates the government’s serious use of the holiday period to boost national mobility and consumption.
The third stimulus focuses on social protection. The government will distribute 10 kilograms of rice to 22 million beneficiary families for two months. Additionally, food aid cards (Kartu Sembako) will be reissued to help preserve the purchasing power of vulnerable groups. These programs are aimed at maintaining economic stability among lower-income households, particularly as food prices fluctuate.
The fourth measure is the Wage Subsidy Assistance (BSU), directed at over 17 million workers earning below Rp3.5 million per month, including 565,000 honorary teachers. The program provides Rp300,000 per month during June and July, helping to preserve incomes for informal and labor-intensive workers. This stimulus is seen as a strategic move to prevent layoffs and ensure sustained consumption among lower-middle-income households.
The fifth stimulus offers a 50% discount on work accident insurance premiums from August 2025 to January 2026. This program specifically targets labor-intensive industries and is managed by the Ministry of Manpower and BPJS Employment. It represents the government’s commitment to creating a safer and more cost-effective work environment.
Initially, the government planned to provide electricity tariff discounts. However, due to fiscal considerations, this policy was canceled and replaced with an increased wage subsidy—from Rp150,000 to Rp300,000 per month. This adjustment is considered more effective in stimulating consumption, as the assistance directly reaches individuals who are likely to quickly spend additional income in the real sector.
All these policy packages are funded through the 2025 State Budget, with an initial allocation estimated at Rp24.44 trillion. Funding is sourced from efficiencies in non-priority expenditures, optimization of ministerial and institutional budgets, and the use of excess budget balances. This funding combination demonstrates the government’s efforts to realign fiscal priorities in response to urgent economic pressures.
Coordinating Minister for Economic Affairs, Airlangga Hartarto, emphasized that the government’s primary concern is the labor-intensive sector, which is under pressure due to declining exports, particularly to the US. He stated that the stimulus package is designed to keep the domestic economy running despite weakened global demand. He also noted that similar measures are being implemented by OECD countries to sustain domestic consumption amid global economic uncertainty.
Finance Minister Sri Mulyani Indrawati added that the main objective of the stimulus is to maintain national economic growth in the second quarter at around 5%. She views the stimulus as part of a medium-term strategy to reduce poverty and open unemployment. Sustained growth will help maintain macroeconomic stability and investor confidence, both domestic and foreign.
Considering the overall strategy, the economic stimulus launched by the government is expected to be effective in maintaining household purchasing power and stabilizing the rupiah amid global pressures. The combination of direct assistance, transport incentives, and worker protection shows that the policy is designed not only for short-term relief but also for ensuring long-term economic resilience.
It is therefore important for the public to actively make use of the available facilities so that economic recovery can be felt evenly and the rupiah remains strong as a foundation for national economic resilience.
Macroeconomic Analyst – Nusantara Economic Research Institute
