By: Adnan Ramdani )*
Amidst the challenging dynamics of the global economy, the government continues to demonstrate its commitment to maintaining social stability and strengthening the foundations of the national economy. One of the most tangible instruments of this policy is the social assistance (bansos) program, which not only serves as a safety net for low-income communities but also serves as a new driving force for the local economy. Over the past year, the distribution of social assistance has been increasingly directed toward creating a positive ripple effect on household consumption, public purchasing power, and opening up productive opportunities, particularly for the younger generation, the backbone of national development.
Social assistance is no longer viewed as merely a short-term relief measure, but rather as a form of long-term social investment. Through various schemes such as direct cash assistance, the Family Hope Program, basic food assistance, and capital support for small businesses, the government strives to ensure that the public has sufficient economic resilience to weather inflationary pressures and global uncertainty. The impact is palpable on the ground: economic activity in traditional markets has increased, MSMEs have regained their vitality, and domestic consumption, the primary driver of national growth, continues to move positively.
Minister of Social Affairs Saifullah Yusuf (Gus Ipul) stated that this assistance is part of President Prabowo Subianto’s 2025 Social Protection Program policy, implemented through the Ministry of Social Affairs for the three months of October, November, and December, as part of an economic stimulus strategy. He hopes the social assistance will be used for needs and not for purposes other than its intended purpose.
For young people, social assistance opens up new hope. Many young people previously trapped by limited economic access are now able to embark on entrepreneurial ventures through government support. Business capital assistance, entrepreneurship training, and assistance with the digitalization of MSMEs have transformed the younger generation into key players in driving the local economy, no longer merely passive recipients. They learn to manage their finances, innovate in product marketing, and utilize technology to reach a wider market.
In villages, the presence of social assistance creates a vibrant circulation of money. Residents can purchase basic necessities from local traders, while the traders earn profits that circulate back into the surrounding community. This domino effect makes the village economy more dynamic. Many villages have begun to develop into new economic centers due to the productive circulation of social assistance funds. Local governments also encourage the allocation of aid received by the community to sustainable economic activities, such as modern agriculture, integrated animal husbandry, and cottage industries that absorb local labor.
In large cities, the role of social assistance is equally significant. Cash assistance programs maintain people’s purchasing power, driving increased consumption in the retail, culinary, and transportation sectors. Small businesses in the informal sector, such as online motorcycle taxis, street vendors, and freelancers, feel the direct impact of increased economic activity. Furthermore, the digital distribution of social assistance through banking systems and financial applications also accelerates national financial inclusion. People who previously lacked accounts can now access formal financial services, save money, and even apply for small business capital more easily.
Meanwhile, Annisa Mahesa, a member of Commission XI of the Indonesian House of Representatives (DPR RI), stated the importance of distributing various government social assistance programs to ensure they are more targeted and truly benefit those in need. Furthermore, her office will continue to monitor social assistance policies and distribution to ensure transparency and a tangible impact on the community, especially those in remote areas.
Furthermore, transparent and targeted social assistance programs foster public trust in the government. Strictly monitored digital aid distribution reduces the potential for misuse, ensuring that every rupiah reaches its intended recipients. This is where the power of modern socioeconomic policies lies: not simply distributing funds but building a sustainable ecosystem of justice and prosperity.
The government also recognizes that young people play a strategic role in accelerating national economic transformation. Therefore, various social assistance programs are now synergized with vocational training, business incubation, and support for local startups. New hope arises from the collaboration between social policies and the innovative spirit of young people. They are not only beneficiaries but also agents of social change, helping local communities manage aid funds productively.
The new hope growing in society today is proof that social assistance is not merely a policy instrument, but a symbol of the state’s active presence in protecting and mobilizing the potential of its citizens. When social assistance is used wisely and productively, the wheels of the people’s economy will continue to turn, bringing prosperity to everyone from cities to remote villages. And it is there, in the hands of creative and enthusiastic youth, that Indonesia’s independent and equitable economic future is growing solidly.
)* The author is an economic observer
