The Direct Cash Assistance Program for the People’s Welfare Drives Social Stability and National Economic Growth

By: Bara Winatha*)
The government continues to strengthen its pro-people economic policy direction through concrete steps to maintain social stability and accelerate national economic growth. One policy currently receiving positive attention is the launch of the Direct Cash Assistance Program for People’s Welfare (BLT Kesra). This program is a key part of the 2025 Economic Package, designed not only to increase the purchasing power of low-income communities but also to strengthen the foundation of the national economy through equitable distribution of welfare and expansion of employment opportunities.

Finance Minister Purbaya Yudhi Sadewa assessed that the BLT Kesra will be a major driver of national economic growth in the fourth quarter of 2025. He estimates that this policy can boost economic growth to 5.67 percent, higher than the government’s target of 5.2 percent. The Rp 10.5 trillion fiscal injection provided through this program will directly stimulate increased household consumption, which currently contributes more than half of the national Gross Domestic Product (GDP).
 
Indonesia’s successful economic growth cannot rely solely on investment or exports; it must also be supported by strong domestic demand. The BLT Kesra (Cash Assistance for the People) is a strategic instrument for maintaining public purchasing power, especially amidst inflationary pressures and global economic uncertainty. By maintaining household consumption, the multiplier effect will be felt throughout the trade, transportation, and logistics sectors across all regions. Furthermore, expansionary fiscal policies such as the BLT Kesra remain within the framework of prudent state financial management.
 
The government has calculated fiscal capacity to ensure that this program does not pose a risk to the budget deficit. Conversely, by increasing cash flow at the household level, tax revenue from consumption will also be boosted, indirectly covering some of the program’s costs. Beyond the economic aspect, the BLT Kesra has a significant social impact. Cash assistance to 35 million beneficiary families not only maintains stable purchasing power but also mitigates the potential for social unrest within the community. ¬†
Meanwhile, Coordinating Minister for Economic Affairs Airlangga Hartarto explained that the Direct Cash Assistance (BLT Kesra) is a strategic policy implemented under the direct direction of President Prabowo Subianto. The government decided to distribute aid for three consecutive months, from October to December 2025, to strengthen people’s purchasing power ahead of the end of the year. According to Airlangga, this policy targets 35.04 million beneficiary families (KPM), or approximately 140 million people, with the primary target group being those in deciles 1 to 4 based on the National Socioeconomic Single Data (DTSEN).
 
This program was launched simultaneously with the College Graduate Internship Program, which is aimed at fresh graduates. Both programs are part of the government’s broader strategy to maintain a balance between social policy and economic growth. In this way, the government not only helps those in need but also strengthens the quality of the workforce and increases national productivity. ¬†
The distribution of the BLT Kesra (Direct Cash Assistance for the People’s Welfare) is carried out through Himbara banks for approximately 18.3 million families and through PT Pos Indonesia for another 17.2 million families. The government ensures that aid distribution is efficient and timely by using a digital recipient data system. This demonstrates that this program is part of a macroeconomic policy design that encourages economic circulation at the grassroots level to keep the wheels of the national economy turning.
 
Over the past few months, the government has seen positive signs on the ground. The consumer confidence index has increased, and retail sales data has shown an upward trend. This indicates that the BLT Kesra policy has succeeded in channeling stimulus to the right targets without causing market distortions. The program is also considered capable of maintaining a balance between economic growth, equity, and social stability, which are key pillars of the Prabowo-Gibran economic vision.
 
Regarding technical implementation, Minister of Social Affairs Saifullah Yusuf (Gus Ipul) emphasized that all BLT Kesra recipients are determined based on the National Socioeconomic Single Data (DTSEN). The amount of assistance received by the community now reaches IDR 1.5 million per family, consisting of IDR 600,000 from the regular Cash Transfer (BLT) program and an additional IDR 900,000 from the Community Welfare (Kesra) Cash Transfer (BLT Kesra). This increase reflects the government’s commitment to strengthening the social safety net and providing opportunities for low-income communities to maintain their families’ economic resilience.

The combination of social and economic policies through the BLT Kesra and apprenticeship programs has become a key factor.This demonstrates that the government prioritizes inclusive development. By strengthening people’s purchasing power and opening new job opportunities for young graduates, Indonesia is laying the foundation for a more resilient and equitable economy. This program also demonstrates the government’s ability to integrate fiscal, social, and employment policies in a single strategic direction.

In a global context, this strategy also serves as an adaptive response to the global economic slowdown. While many countries are opting for fiscal tightening, Indonesia is strengthening social protection to keep the domestic economy running. This approach reflects the Pancasila economic philosophy, which places people’s welfare at the center of national development. BLT Kesra is not simply an aid program, but a symbol of the state’s proactive presence in protecting its people and driving inclusive and equitable national economic growth.

*) The author is a social and community observer.