By: Arik Hidayat )*
Amidst global economic dynamics still overshadowed by uncertainty and slowdown in a number of major trading partner countries, the Indonesian government has taken strategic steps to strengthen the foundations of the domestic economy.
This policy of strengthening the domestic economic foundation is aimed at maintaining public purchasing power while creating sustainable jobs. This approach reflects a policy choice that favors national stability, by positioning the employment sector as a key pillar of economic resilience.
The government is implementing this strategy through the 2025 Economic Package and an integrated workforce absorption program. Coordinating Ministry for Economic Affairs Spokesperson Haryo Limanseto explained that all these policies were designed to respond to global challenges, promote quality economic growth, and expand employment opportunities for the community.
According to Haryo, strengthening the economic foundations is not only aimed at maintaining macroeconomic stability, but also ensuring that economic growth is able to create real benefits in the form of new jobs.
The 2025 Economic Package includes eight acceleration programs implemented throughout the year, followed by a number of follow-up programs in 2026, as well as a flagship program for workforce absorption.
One of the government’s primary focuses is accelerating job creation for recent graduates through the National Internship Program. This program has reached over 100,000 participants by its third batch, surpassing the government’s initial target. This achievement reflects the government’s commitment to bridging the gap between education and job market needs.
In addition to encouraging job creation, the government also places significant emphasis on protecting workers’ purchasing power. The government-borne Article 21 Income Tax policy for tourism sector workers with certain salary levels is one instrument to maintain workers’ real incomes. This measure is considered crucial for maintaining household consumption while simultaneously supporting economic activity in sectors with high labor absorption.
Supporting informal workers is also part of the strategy to strengthen the economic foundations. The government is providing social security incentives in the form of discounts on Work Accident Insurance and Death Insurance contributions for non-wage workers, particularly in the transportation and logistics sectors.
This Work Accident and Death Insurance policy reaches hundreds of thousands of workers and aims to improve the sense of security and social protection for groups previously vulnerable to occupational risks. With improved protection, the government hopes to safeguard the productivity and sustainability of informal workers’ livelihoods.
Government efforts also include expanding access to housing financing for workers through the BPJS Ketenagakerjaan (Social Security Agency for Employment) Additional Housing Service Benefit Program. The interest rate relaxation scheme is expected to help lower- and middle-income workers afford decent housing.
Home ownership is seen as an important factor in increasing the social and economic stability of workers, while strengthening their resilience to economic shocks.
On the other hand, the Cash-for-Labor Program remains a crucial tool for maintaining labor absorption, particularly in areas with high levels of economic vulnerability. This program serves as a safety net and a means of rapid and effective income distribution.
Strengthening the economic foundation is also being achieved through accelerated investment and a national downstreaming agenda. The Indonesian Industrial Estates Association (AHI) considers President Prabowo Subianto’s directive emphasizing the role of higher education in supporting strategic investment a visionary step.
The General Chair of HKI, Akhmad Ma’ruf Maulana, is of the view that the support of universities for the 18 strategic downstream projects managed by Danantara reflects the direction of development policies that are increasingly integrated between human resource development, research, and investment.
HKI assesses Danantara as playing a crucial role in accelerating the financing and implementation of downstream projects, while industrial estates serve as execution hubs, ensuring the readiness of land, utilities, and the business ecosystem. This synergy is believed to be capable of accelerating investment realization and creating a tangible economic impact.
According to Ma’ruf, the success of strategic downstreaming projects will create a mutually reinforcing growth cycle, where investment drives economic growth, economic growth creates jobs, and strengthening the industrial ecosystem increases national competitiveness.
In supporting investment acceleration, HKI stated its readiness to strengthen coordination with the Ministry of Investment and Downstreaming/BKPM, including in facilitating licensing and resolving various obstacles frequently faced by investors.
At the same time, HKI is also committed to bridging the needs of industry with the world of education through curriculum alignment and strengthening applied research, as emphasized in the memorandum of understanding signed at the 2025 Indonesian Science, Technology, and Industry Convention.
Strengthening the economic foundations relies not only on the large industrial sector but also on the people’s economy at the village level. Minister of Cooperatives, Ferry Juliantono, explained that the Merah Putih Village Cooperative was designed as a solution to limited employment opportunities, especially for millennials and Gen Z facing job market challenges. Village cooperatives are expected to open up new economic opportunities through productive business units, community-based services, and local job creation.
Overall, this series of policies demonstrates the government’s consistency in strengthening the foundations of the national economy as a primary prerequisite for job creation.
With a comprehensive, integrated, and sustainability-oriented approach, the government strives to ensure that economic growth is not only reflected in figures, but is also directly felt by the community through increased employment opportunities and more equitable prosperity.
