The Government Reaffirms Its Commitment to Economic Improvement as a Positive Response to Public Aspirations
By: Alexander Royce*)
Social movements have recently become a space for constructive dialogue that has received serious attention from the government. In fact, these public aspirations have opened up a space for more productive policy reflection and synergy with the people’s interests and the direction of national development. The current government appears to be not only listening but also taking concrete steps to address structural weaknesses and address widespread concerns, particularly in legal, governance, and economic aspects.
Since the wave of demonstrations in late August, 17 short-term and 8 long-term demands have been widely circulated on social media and in the public sphere. Several public aspirations emphasize improving workers’ welfare, guaranteeing a living wage, and protecting contract workers. In response, the government held a cross-ministerial coordination meeting. Coordinating Minister for Law, Human Rights, Immigration, and Corrections, Yusril Ihza Mahendra, stated that the government’s positive response was a first step. He emphasized that the people’s aspirations contain real criticism of things that have been deemed inadequate or suboptimal, and the government is obliged to respond with corrective measures. Although not all points can be realized instantly, Yusril emphasized that things that can be done immediately will be implemented—especially regarding law enforcement, transparency, and institutional improvements.
One crucial aspect of improving the socio-political climate while maintaining stability is the management of public programs that directly impact the community. Yahya Zaini, Deputy Chairman of Commission IX of the Indonesian House of Representatives (DPR RI), plays a key role in parliamentary oversight of government programs, particularly regarding the mass poisoning case in the Free Nutritional Meals (MBG) program. He believes such cases constitute an important evaluation to further strengthen the government’s oversight system and governance in the implementation of social programs. He urged the government to tighten oversight and even consider alternative management options for MBG by schools and school committees to ensure hygiene, safety, and menu relevance.
Yahya further highlighted the issue of a moratorium on tobacco excise tax increases as a mitigation measure against the wave of layoffs and production cost pressures in the tobacco industry, which employs millions of workers from upstream to downstream. He emphasized that the moratorium must be accompanied by strict oversight to ensure the illegal market does not harm the state and businesses.
In strategic economic policy, Coordinating Minister for Economic Affairs Airlangga Hartarto addressed the aspirations of the 17+8 program by strengthening investment and increasing public productivity. The government designed the second phase of the 2025 Economic Package, comprising eight key policies, including an internship scheme for new graduates, an exemption from Article 21 Income Tax (PPh 21) in the tourism sector, subsidized social security contributions for informal workers, and a relaxation of housing loans for workers. This strategy serves as a milestone in accelerating the maintenance of purchasing power and creating direct employment opportunities in the real sector.
A trillion rupiah stimulus package for the second half of 2025 was also announced as part of efforts to maintain domestic economic momentum. Airlangga stated that the labor-intensive investment credit program, the expansion of the housing FLPP (Fluent Provision Program), and pro-people fiscal policies are part of a series of strategies to ensure economic growth is not limited to macroeconomic figures but directly felt in people’s daily lives.
In line with this, the government formulated an “8+4+5” stimulus package which was discussed with the Ministry of Finance, namely 8 main programs, 4 follow-up programs and 5 flagship government programs for workforce absorption, to spur productivity, expand employment opportunities, and maintain public consumption until the end of the year.
Beyond the economic measures, several challenges deserve attention. In handling the MBG, in addition to public pressure over poisoning cases, budget absorption and transparency challenges have also come under scrutiny. In many cases, allocated funds are not optimally utilized, and public data is difficult to access, fueling public concerns about the program’s credibility.
However, the government’s response so far has been positive. The moratorium on House allowances, the suspension of foreign travel for House members, and the tendency to expedite deliberations on the Asset Confiscation Bill indicate that policy direction is aligned with some public demands.
Equally important, the government also emphasized that the impact of the socio-political upheaval is temporary and manageable. According to Airlangga, the second-semester strategy and measured stimulus will maintain economic stability and spur growth.
Overall, the positive response to the 17+8 aspirations has triggered an acceleration of policies that favor economic and institutional improvement. The government is moving beyond political gimmicks to respond to the people’s fundamental demands for state policies to reflect justice, transparency, social protection, and inclusive growth.
*) The author is a social observer
