Rp 24.44 Trillion Stimulus Proof That the State is Present to Safeguard the Economy and Protect the People
By: Ricky Rinaldi
The Indonesian government has once again demonstrated responsive leadership that sides with the people. Amid increasingly uncertain global economic pressures, an economic stimulus of IDR 24.44 trillion was officially disbursed as a strategic step to maintain growth, reduce risks, and strengthen community resilience. Not just a number, this stimulus is real evidence that the state is present to ensure that the economy continues to grow while ensuring that the common people do not become victims of global shocks.
President of the Republic of Indonesia Prabowo Subianto took firm and swift steps by releasing five stimulus packages in a limited meeting at the Merdeka Palace, June 2, 2025. In his direction, he emphasized that this program is not only a technical fiscal policy, but also a political and moral commitment of the government to be present to protect the people and maintain the momentum of national growth amidst the global slowdown.
The President’s move was reinforced by a technical explanation from the Minister of Finance of the Republic of Indonesia Sri Mulyani Indrawati who stated that the world economic projection this year has decreased from 3.3 percent to 2.8 percent. Geopolitical turmoil, commodity price fluctuations, and uncertainty of global trade policies are strong reasons behind this decision. The government did not remain silent, but instead took the initiative to keep the wheels of the economy moving.
The five main stimulus programs that were rolled out targeted the concrete needs of the community. First, transportation fare discounts during school holidays were a breath of fresh air for millions of families. A 30 percent discount for trains, VAT subsidies for plane tickets, and a 50 percent discount for sea transportation directly targeted the public’s purchasing power while encouraging the movement of the tourism sector and local MSMEs. The budget allocation of IDR 0.94 trillion was directed to reach more than 3 million passengers during June-July 2025.
Second, the stimulus for a 20 percent toll tariff discount will be enjoyed by around 110 million users. This policy is carried out through cooperation between the PUPR Ministry and BUJT, without burdening the APBN through a non-PPN scheme. This reflects the synergy between the state and the business world in creating mutual cooperation-based policies for the people.
Third, the thickening of the social assistance program. As many as 18.3 million families receiving basic food cards will receive additional cash of Rp200 thousand per month for two months, plus 10 kilograms of rice assistance per month. With a total budget of Rp11.93 trillion, this step ensures that the poor can still meet their basic needs even though global food prices are rising.
Fourth, wage subsidies or BSU are given to 17.3 million workers with salaries below Rp 3.5 million, as well as 565 thousand honorary teachers from the Ministry of Education and the Ministry of Religion. This Rp 600 thousand assistance for two months will immediately increase purchasing power and keep domestic consumption strong. The government also extended the 50 percent reduction in Job Loss Insurance (JKK) contributions for 2.7 million labor-intensive industrial workers.
Fifth, a 50 percent discount on JKK contributions is also given to low-wage workers as further protection. This is not just about numbers, but a real form of government empathy for the most vulnerable workers and workforce.
Sri Mulyani revealed that of the total Rp 24.44 trillion of this stimulus, Rp 23.59 trillion came from the APBN and the remaining Rp 0.85 trillion was supported by the private sector. This shows healthy and collaborative fiscal management—not reactive, but strategic.
In addition to this stimulus package, the government is also continuing priority programs such as Free Nutritious Meals (MBG), People’s Schools, Red and White Cooperatives, and the construction of people’s houses. These short-term policies and long-term development programs run hand in hand, showing a consistent, inclusive, and structured direction of development.
The government is optimistic that with these steps, economic growth in the second quarter can approach 5 percent, and unemployment and poverty rates can be reduced more quickly. With this biased and measured approach, Indonesia shows the world that in the midst of a global crisis, the country is not only surviving—but continuing to move forward.
Through this policy, the public gets a strong signal that the state is present, cares, and works for real. The Rp24.44 trillion stimulus is not just a fiscal policy, but a form of the state’s presence among the people. When the world faces uncertainty, Indonesia responds with courage, speed, and confidence.
The success of this policy also opens up space for accelerating the growth of the digital economy, strengthening the logistics sector, and increasing domestic consumption. With maintained purchasing power and increased transportation activities, small to medium-sized businesses are expected to experience a surge in demand, creating a positive domino effect on the creation of new jobs.
Not only that, this step also strengthens market players’ confidence in the sustainability of Indonesia’s fiscal policy direction. Stability and certainty of regulation, accompanied by protection for vulnerable groups, are important foundations in maintaining a conducive national investment climate amid external pressures.
This stimulus is a real picture of the new face of the government that does not hesitate to act quickly, sides with the people, and makes policies a tool for social and economic sustainability. Amid global uncertainty, Indonesia is strengthening its commitment to grow with its people, towards a strong, prosperous, and economically sovereign country.
*)Strategic Issues Observer
