The Government Launches 17 Economic Stimulus Packages to Improve Public Welfare
By: Arif Budianto )*
The government has once again demonstrated its commitment to driving the economy by launching 17 targeted and layered economic stimulus packages. These packages are divided into three main categories: eight acceleration programs for 2025, four continuation programs for 2026, and five specific programs for job creation. This initiative marks a concrete step by the government to strengthen the economic foundation while protecting public welfare. With an approach that targets both businesses and vulnerable groups, this stimulus package is expected to address global challenges and maintain the momentum of national economic recovery.
One stimulus that has attracted public attention is the 50 percent discount on BPJS Ketenagakerjaan (Social Security Agency) contributions for online motorcycle taxi drivers, motorcycle taxi drivers, couriers, and logistics workers. This policy not only eases the burden on informal workers but also expands social protection for the sector that has been the backbone of mobility and distribution of goods. The government also issued a policy exempting Article 21 income tax (PPh) for workers in the hotel, restaurant, and cafe sectors with salaries below IDR 10 million per month. This incentive is believed to breathe new life into the tourism and culinary industries, which are still struggling to recover from the impact of the pandemic. With this stimulus, people’s purchasing power is predicted to be maintained while boosting productivity in the real sector.
In addition to targeting informal workers and the service sector, the government is also focusing on young people through an internship program for 20,000 recent college graduates. This program, coupled with a monthly allowance of IDR 3.3 million, provides young people with the opportunity to gain work experience and temporary income. This policy not only reduces unemployment but also prepares a qualified workforce that is better prepared to compete in the global market. Furthermore, the government is providing food assistance in the form of 10 kilograms of rice for two months to 18.3 million beneficiary families. With a total budget of IDR 7 trillion, this program demonstrates the government’s serious commitment to maintaining food security and protecting vulnerable groups from fluctuations in the prices of basic necessities.
Coordinating Minister for Economic Affairs Airlangga Hartarto emphasized that this stimulus package is designed to achieve the economic growth target of 5.2 percent by the end of 2025. He stated that government spending must be continuously monitored to become a key instrument in driving the national economy. The stimulus package is not merely a short-term solution, but rather a strategy to maintain public trust and ensure equitable development. Designed to address all levels of society, this policy is believed to create a positive domino effect on consumption, investment, and employment.
Indonesia’s economic performance itself shows a positive trend. In the second quarter of 2025, economic growth was recorded at 5.12 percent, up from 4.87 percent in the previous quarter. Finance Minister Purbaya Yudhi Sadewa stated that the use of the budget for economic stimulus can stimulate the economy without widening the 2025 State Budget deficit. This means the government has successfully maintained a balance between fiscal expansion and prudent state financial management. This fiscal stability is important as a signal to investors and international markets that Indonesia remains capable of maintaining credibility in budget management.
Support for the government’s measures has also come from analysts and independent institutions. The Executive Director of the NEXT Indonesia Center, Christiantoko, believes this stimulus is closely related to the disbursement of Rp 200 trillion in surplus budget funds (SAL) to five state-owned banks. These funds are directed to productive sectors to provide significant leverage to the economy. He believes this additional liquidity must be channeled appropriately, particularly to business sectors with a high multiplier effect . This policy, in addition to stimulating the business sector, will also boost demand from consumers.
Christiantoko added that the success of the stimulus program depends not only on the size of the budget, but also on the effectiveness of its distribution and the consistency of policies. Programs that boost public purchasing power must remain a priority so that businesses have an incentive to expand their activities. With maintained purchasing power, household consumption will remain the main pillar of national economic growth. This aligns with Indonesia’s economy, whose contribution to public consumption is highly dependent. Therefore, maintaining purchasing power is tantamount to ensuring the economy keeps turning.
Furthermore, this stimulus package also has an important social dimension. Policies that address informal workers, the tourism sector, and the younger generation demonstrate inclusiveness in economic policy formulation. This indicates that the government is not solely focused on growth figures, but also on equitable, quality growth. When people from all walks of life feel the benefits of the stimulus, trust in the government will increase. Ultimately, this strengthens the legitimacy of current economic policies.
The economic stimulus package launched by the government reflects a comprehensive strategy to address global challenges, from the global economic slowdown to volatile food prices. Through a combination of fiscal incentives, social assistance, and support for the productive sector, the government has demonstrated the courage to take significant action. Amid global uncertainty, the government’s foresight in designing measured policies will determine the future direction of the economy. Indonesia has a significant opportunity to maintain growth momentum while strengthening its competitiveness at the regional and international levels.
)* The author is an economic observer.