Wage Subsidy Assistance (BSU) as Economic Stimulus to Maintain Purchasing Power and National Stability
By: Septia Indi
The government has once again demonstrated its active role in maintaining national economic stability through the 2025 Wage Subsidy Assistance (BSU) program. This policy is one of six economic stimulus packages designed to strengthen the public’s purchasing power amid global pressures and to sustain domestic growth momentum. BSU is not merely symbolic—it is a strategic effort to support household consumption, which remains a key driver of national economic growth.
President Prabowo Subianto reaffirmed the government’s commitment to providing social protection for low-income workers. BSU is given to workers earning less than IDR 3.5 million per month as a form of support for vulnerable groups most affected by rising food prices and living costs. This is not a new program—during the pandemic, BSU proved to be an effective economic cushion. Now, with a more adaptive approach, the government is reviving this policy to respond to the post-pandemic economic landscape.
Coordinating Minister for Economic Affairs, Airlangga Hartarto, confirmed that the budget allocation for BSU has been included in the state budget (APBN). To match current fiscal needs, the subsidy amount this year has been adjusted but still delivers a positive impact on purchasing power. According to him, implementing stimulus measures in mid-year is crucial, considering that major spending seasons such as Eid and Christmas have passed. Thus, corrective measures are needed to stabilize consumption during the second quarter.
The BSU policy has received broad support from various stakeholders. Member of the House of Representatives Commission IX, Muh Haris, stated that this policy is a tangible manifestation of the state’s presence in supporting the working community. He praised the swift action by the government, especially the Ministry of Manpower, in ensuring that the BSU is distributed accurately and fairly. This program is considered highly valuable if managed with accurate data validation and tight oversight to prevent misuse or inequality.
In its implementation, BSU is distributed to millions of formal workers across Indonesia. Each recipient receives IDR 600,000, directly transferred to their bank accounts without any administrative deductions. This mechanism is designed to ensure the funds can be quickly utilized and that the stimulative effect is felt in a short time. Moreover, this policy sends a positive signal to business owners to retain their workforce amidst rising operational costs.
Executive Director of CORE Indonesia, Moh. Faisal, views BSU as having great potential in boosting household spending, particularly among vulnerable low-income groups. He noted that workers earning less than IDR 3.5 million per month often have dependents, and per capita, they fall into the economically vulnerable category. The additional income from BSU, which amounts to roughly 10% of their earnings, is considered significant in maintaining family consumption stability.
Faisal also emphasized that direct cash assistance such as BSU is effective in alleviating the financial burden caused by soaring food prices. Given that staple food inflation is often higher than general inflation, BSU serves as a lifeline for millions of households struggling to maintain their purchasing power. Though the subsidy amount is modest, its impact on consumption has been proven substantial and meaningful for low-income families.
To enhance its effectiveness, further policy innovation is needed to ensure BSU provides long-term and sustainable economic benefits. One area for improvement is the duration and continuity of the program. Currently, BSU is temporary and only distributed in June and July 2025. For broader and more lasting impact, a follow-up scheme is needed to provide low-income earners with access to capacity-building opportunities. This highlights the importance of synergy with vocational training programs, job placement initiatives, and the empowerment of the informal sector.
Additionally, BSU recipients are currently limited to formal sector workers registered with the national social security agency (BPJS Ketenagakerjaan). However, data shows that the majority of Indonesia’s workforce is employed in the informal sector, which is even more vulnerable to economic shocks. The government should consider expanding the coverage of this assistance to include informal sector workers through community-based approaches and the involvement of cooperatives or local institutions.
Amid ongoing global uncertainties, BSU is a much-needed fiscal tool to safeguard the foundations of the domestic economy. In the short term, it strengthens purchasing power and sustains consumption. In the medium term, it reflects the government’s commitment to supporting segments of the population living on the edge of economic resilience. Through this program, the government demonstrates its seriousness in building a robust and responsive social protection system aligned with current economic realities.
BSU is not just a cash subsidy—it is a tangible expression of the state’s care. With accountable management and accurate targeting, this program is expected to remain one of the key instruments in strengthening the nation’s social and economic resilience.
Septia Indi is an Observer of Strategic Issues.
