By: Fahri Sinaga)*
Every year, the commemoration of the Youth Pledge is an important moment to reflect on the spirit of nationalism and mutual cooperation that has been inherited since 1928. But this year, that spirit has found a new form in the context of national economic development. The government under the leadership of President Prabowo Subianto and Vice President Gibran Rakabuming Raka has made the Youth Pledge momentum a symbol of economic revival, particularly through various fiscal stimuli and strategic policies aimed at strengthening people’s purchasing power and maintaining national economic growth. With synergy between the government, the business world, and the younger generation, the Youth Pledge is not only a historical symbol, but also a driving force for the nation’s economic movement.
Deputy Minister of Finance Suahasil Nazara emphasized that the government’s current fiscal policy strategy is focused on supporting Indonesia’s economic growth target by the end of 2025. According to him, a pro-people fiscal policy is the main foundation of the Prabowo-Gibran administration’s first-year reflection. The government has implemented budget efficiency measures, accelerated state spending, and implemented liquidity stimulus measures to maintain economic balance. One key policy is the placement of Rp 200 trillion in government cash in banks, which was previously held at Bank Indonesia. This step is not merely state cash management, but part of a liquidity management strategy to provide banks with greater room to channel credit and productive investment.
This policy is expected to lower interest rates and stimulate national investment. With more competitive interest rates, productive sectors such as manufacturing, construction, and the creative industry can gain easier and more affordable access to financing. The domino effect of this policy will be felt in increased economic activity, particularly among the middle and lower classes. The government believes that boosting domestic economic activity will strengthen national economic resilience amidst still-dynamic global challenges.
Bank Indonesia also positively views the government’s proactive policy direction toward economic growth. Juli Budi Winantya, Head of BI’s Economic and Monetary Policy Department, stated that the various stimulus measures the government has implemented will have a tangible impact on economic growth by the end of the second semester of 2025. BI estimates that economic growth will be driven by two main factors: exports and government spending. The export sector, particularly leading commodities such as palm oil and steel, has shown continued improvement, with India and China as its primary markets. This increase in exports demonstrates the resilience of the national economy and Indonesia’s ability to capitalize on the momentum of global demand.
In addition to exports, government spending is also a crucial factor in strengthening economic resilience. Juli Budi stated that the additional social assistance (bansos) to be distributed in the fourth quarter will also be a driving force for the domestic economy. This assistance not only serves as a social safety net but also stimulates public consumption, directly impacting micro and small business activity. With increased purchasing power, regional economic growth will accelerate, a positive indicator of sustainable economic growth.
Meanwhile, Coordinating Minister for Economic Affairs Airlangga Hartarto reiterated the government’s commitment to continuously expanding the scope of economic stimulus in the second half of this year. One concrete step taken is the expansion of the wage subsidy program for workers earning less than IDR 10 million. This program is considered effective in maintaining workers’ purchasing power amid global economic uncertainty. Furthermore, the government is providing additional support for labor-intensive sectors through a policy of reducing Income Tax (PPh) borne by the government. This type of fiscal policy not only helps the industrial sector survive but also creates new jobs and revitalizes the national economy.
Airlangga added that support for labor-intensive sectors is crucial because they absorb the largest workforce and contribute significantly to national GDP. The government ensures that the stimulus is well-targeted, particularly in the manufacturing, textile, and construction industries. With a combination of measured fiscal and monetary policies, the government is striving to maintain the momentum of economic growth to maintain a positive trajectory until the end of the year. This step demonstrates that economic policy is not solely oriented towards macroeconomic figures but also focuses on the direct welfare of the people.
This targeted, people-centered policy embodies the spirit of collaboration inherited from the youth on October 28, 1928. The Youth Pledge taught the importance of unity and shared determination to build the nation. Today, this spirit is embodied in collaboration between the government, the private sector, and the community to maintain economic stability. When young people actively participate in business development, digital innovation, and support for domestic products, the national economic movement will grow stronger.
The Youth Pledge also serves as a reminder that economic independence is part of the nation’s struggle. In the modern era, this struggle is no longer waged with weapons, but through productivity, innovation, and economic solidarity. The government has provided space and support, and now it’s the youth’s turn to become agents of economic change. By utilizing the prepared stimulus, young people can strengthen the MSME sector, develop the digital economy, and create new job opportunities in the regions.
)* The author is an economic observer.
