The Economic Stimulus Package Proves the Government’s Response to the Public’s Demands for 17+8
By: Erika Carolina )*
The government has officially launched 17 economic stimulus packages, demonstrating its commitment to responding to public demands, known as the 17+8 program . The package was announced by Coordinating Minister for Economic Affairs Airlangga Hartarto after a meeting with Indonesian President Prabowo Subianto and several ministers at the Presidential Palace.
Airlangga emphasized that the stimulus package is divided into three broad categories: eight accelerated programs in 2025, four continuation programs in 2026, and five programs focused on job creation. Through this policy design, the government prioritizes public welfare and the protection of vulnerable groups.
The program, dubbed the 2025 Economic Package, contains 17 concrete steps, including accelerated deregulation, social assistance, support for informal sector workers, and a large-scale labor absorption program.
The Palace described this stimulus package as a direct response to public concerns. Fithra Faisal, Chief Expert at the Presidential Communications Office (PCO), explained that the 8+4+5 program would impact three main aspects: job creation, increased purchasing power, and strengthened economic growth.
Fithra stated that job creation is a primary focus. For example, an internship program for 20,000 new college graduates will be provided with a monthly stipend of IDR 3.3 million. This way, young graduates will not be left unemployed for long periods.
The government has guaranteed that 20,000 fresh graduates can directly enter the system through internships. This measure is taken to ensure they are not a burden but instead become a productive workforce. Furthermore, gig workers, such as online motorcycle taxi drivers, couriers, and logistics drivers, will also receive social protection in the form of a 50 percent discount on Work Accident Insurance (JKK) and Death Insurance (JKM) contributions for six months. This group is considered high-risk, so social security is provided as a form of tangible protection.
The cash for work program launched by the Ministry of Transportation and the Ministry of Public Works is said to expand employment opportunities while maintaining people’s purchasing power.
He further explained that, through the Merah Putih Village/Sub-district Cooperative, the government is targeting the creation of more than one million jobs by the end of December. Long-term programs such as the Merah Putih Fishermen’s Village are expected to create 200,000 jobs, while the revitalization of coastal fish ponds is targeted to absorb 168,000 workers. The modernization program for 1,000 fishing boats is even expected to create new jobs for 200,000 people, and smallholder plantations, with replanting of 870,000 hectares of land, are projected to create 1.6 million jobs in two years.
The second targeted impact is increased public purchasing power. Fithra stated that the stimulus package will distribute social assistance in the form of 10 kilograms of rice to 18.3 million recipients during October–November 2025. In addition, the government-borne PPh 21 (DTP) extension for tourism sector workers is also being implemented. By receiving social assistance and contribution subsidies, people’s expenses will be reduced. Money previously used to pay for these needs can be diverted to consumption, thereby increasing purchasing power.
This increase in purchasing power is further strengthened through labor-intensive programs that generate direct income for workers. Labor-intensive projects create jobs and cash, which inevitably impact purchasing power.
The third impact of the stimulus package, according to the Palace, is strengthening national economic growth. The government’s target is 5.2 percent growth by the end of 2025. As seen in the second quarter, economic growth was maintained above 5.12 percent. This stimulus package is projected to provide an additional boost, particularly due to its focus on increasing people’s disposable income .
The economic stimulus package initiated by President Prabowo also received full support from parliament. The National Awakening Party (PKB) faction viewed the policy as a concrete step by the government to improve public welfare.
Bertu Merlas, a member of Commission XI of the Indonesian House of Representatives from the National Awakening Party (PKB) faction, emphasized that the program’s support is given because it directly targets vulnerable groups and lower-income groups. PKB expressed its appreciation for President Prabowo’s policy, believing it demonstrates the government’s commitment to improving the economy, even at the grassroots level.
Bertu also explained that protecting informal workers, such as motorcycle taxi drivers and couriers, is a crucial step, as they typically operate at high risk but receive minimal social protection. This program is believed to increase purchasing power, reduce unemployment, and foster an entrepreneurial spirit among the lower classes.
He also emphasized that the program’s effectiveness must be maintained through regular monitoring and evaluation. Bertu stated that monthly evaluations are necessary to ensure that the benefits are truly felt by the community, for example, in improving the quality of urban settlements or providing workspace for the gig economy. He also warned against abuse of authority. If any party misuses the program, strict sanctions must be imposed. Only in this way can the program’s benefits, as mandated by the President, be guaranteed.
With the launch of this stimulus package, the government has demonstrated its responsiveness to public demands. The demands of the 17+8 program, long voiced by the public, are considered to have been met with concrete steps through measured economic policies oriented toward public welfare and designed to strengthen the foundations of national growth.
The stimulus package is a strong signal that the government is not only listening but also acting to address the people’s needs amid increasingly complex economic challenges.
)* Economic Observer
