By: Alexander Royce*)
Facing global uncertainty and rapidly changing economic dynamics, the Indonesian government launched the 2025 Economic Package, also known as the 8+4+5 package, as a strategic response to strengthen social resilience and accelerate national economic growth. With a budget allocation of Rp 16.23 trillion, this package is designed to encourage investment, expand employment, and maintain purchasing power, particularly among vulnerable groups.
According to Coordinating Minister for Economic Affairs Airlangga Hartarto, the 2025 Economic Package consists of eight accelerated programs for 2025, four continuation programs for 2026, and five priority programs for workforce absorption. He explained that the combination of fiscal policy, investment incentives, and deregulation is a crucial instrument for maintaining the momentum of national economic growth while simultaneously creating jobs in labor-intensive and informal sectors.
This demonstrates that the government is not solely focused on growth targets, but also on equalizing employment opportunities. Through measured policies, this package is expected to provide a concrete solution to the challenges of unemployment and ongoing global uncertainty.
Finance Minister Purbaya Yudhi Sadewa emphasized that this stimulus will not significantly widen the state budget deficit. He emphasized that allocations for programs such as food aid, internships for new graduates, and fiscal incentives have been allocated from existing spending, specifically optimizing the absorption of the remaining budget for the current year, not from additional new debt.
This statement provides assurance that the government’s expansionary policies will continue to be implemented with fiscal discipline. This ensures investor confidence remains intact, while the public can enjoy immediate benefits without worrying about the risk of excessive debt burdens in the future.
Meanwhile, Andry Asmoro, Chief Economist of PT Bank Mandiri Tbk, stated that the 8+4+5 stimulus package has significant potential to absorb millions of new workers, particularly in labor-intensive sectors, the informal sector, and rural areas. He assessed that programs such as direct assistance, tax incentives, cash-for-labor programs, and support for the housing, fisheries, and plantation sectors will simultaneously maintain people’s purchasing power and strengthen the national economic structure.
This assessment further strengthens the view that the government’s stimulus package is not only relevant in the short term but also capable of bolstering national competitiveness in the long term. With a strong consumption base and support from the productive sector, Indonesia’s economic resilience will be further strengthened.
One of the key points of this stimulus is direct support to the community in the form of 10 kilograms of rice for 18.3 million households, a “cash for work” program for more than 600,000 people through various infrastructure projects, and an extension of tax exemptions for small businesses. Furthermore, the government is preparing incentives for workers in the tourism sector, a pillar of post-pandemic recovery. All of these measures are aimed at maintaining economic growth at around 5.2% in 2025, despite signs of a slowdown in the third quarter.
The implementation of the 8+4+5 package can be viewed as a balanced policy that seeks to maintain balance between the demand and supply sides. On the demand side, food aid programs, cash-for-work, and direct tax incentives to households will maintain the purchasing power of the lower-middle class. On the supply side, deregulation, digitalization, and investment in strategic sectors such as agriculture, fisheries, housing, and plantations will expand production capacity and increase the added value of domestic industry.
This policy is not without challenges, as its implementation still requires serious attention. Challenges include efficiency of implementation, speed of budget realization, coordination between ministries and agencies, and oversight to ensure innovative programs truly reach those most in need. Nevertheless, several sources expressed optimism that the government has the capacity to address these challenges. Purbaya Yudhi Sadewa even emphasized that this stimulus utilizes unused spending space, thus not drastically burdening the deficit.
From a macroeconomic perspective, this stimulus package not only aligns with the national growth projection, estimated at 4.9 to 5.0 percent throughout 2025, but also has a significant social impact. Synergy between fiscal and monetary policies and price stability are believed to be key to optimal stimulus implementation, while programs such as job creation, internships for new graduates, food assistance, and reduced JKK/JKM contributions play a crucial role in strengthening human resource competitiveness while protecting low-income communities from cost-of-living pressures.
Overall, the 2025 Economic Stimulus Package is a medium-term strategy designed to strengthen the foundations of the national economy by expanding employment, increasing productivity, strengthening food security, and safeguarding public welfare. With proper implementation and consistent oversight, this policy is believed to be a significant milestone in realizing inclusive and sustainable economic growth, and affirms the government’s commitment that public prosperity can be achieved through measured policies and concrete actions.
*) The author is a social observer
