Economic Equality Stimulus in Q1 2025, Government Accelerates THR and Social Assistance

By: Dzul Ilmi Muis

The government has taken strategic steps to encourage economic growth by accelerating the disbursement of holiday allowances (THR) and various social assistance programs. This policy is part of the eight main steps initiated by President Prabowo Subianto to stimulate economic equality in the first quarter of 2025.

President Prabowo emphasized that the government continues to pursue various policies to maintain people’s purchasing power. One of the concrete steps taken is to accelerate the distribution of social assistance, including the Family Hope Program (PKH), Basic Food Cards, and Village Fund Direct Cash Assistance (BLT-DD). With this policy, people with lower-middle incomes can obtain benefits faster to meet their daily needs.

In addition, the disbursement of THR for state civil servants (ASN) and private workers is scheduled earlier in March 2025. This step aims to increase the circulation of money in the community ahead of Ramadan and Eid al-Fitr, so that the wheels of the economy in various sectors, including trade and services, can move faster.

The Ramadan-Eid stimulus program which includes discounts on airline tickets, toll rate cuts, and national shopping promos will also be optimized to strengthen the impact of this policy.

The increase in the provincial minimum wage (UMP) which has been set for 2024 is one of the factors that is expected to increase people’s purchasing power. With higher wages, household consumption, which is the main driver of national economic growth, is expected to increase significantly.

The government is also preparing an economic stimulus package in the form of tax incentives for the purchase of property and electric vehicles, tax subsidies for hybrid vehicles, and income tax relief for labor-intensive sectors. All of these steps are aimed at supporting the sustainability of economic growth in various sectors.

In the agricultural sector, national rice production has increased significantly. President Prabowo emphasized that the latest report shows better harvest results than the previous year.

With sufficient food availability, the stability of staple food prices is expected to be maintained, so that inflationary pressures that can erode people’s purchasing power can be minimized.

The Directorate General of Regional Administration Development, Ministry of Home Affairs, also plays a role in supporting the economic equality agenda by drafting regulations related to Urban Service Standards (SPP).

Urban service standardization is carried out to ensure public access to quality and sustainable public facilities. In the process, data-based measurement methods and public perception are used so that the results achieved are truly in accordance with real needs in the field.

Regional governments are expected to integrate these standards into the Urban Management Implementation Plan (RP2P) which is part of the Regional Medium-Term Development Plan (RPJMD).

At the village level, the Minister of Villages and Development of Disadvantaged Regions (Mendes PDT) Yandri Susanto emphasized the importance of accelerating village development as part of the vision of economic equality.

Collaboration with various parties, including the Indonesian National Armed Forces (TNI), is optimized to strengthen village food security through the Tentara Manunggal Membangun Desa (TMMD) program.

By allocating at least 20 percent of Village Funds for the food security sector, villages in Indonesia are expected to increase local food production capacity and reduce dependence on imports.

The Free Nutritious Meals (MBG) program is also a priority in the economic equality strategy. The government is collaborating with Village-Owned Enterprises (BUMDes) to provide raw materials for food to support the program.

With this approach, economic benefits are not only felt by aid recipients, but also by farmers and business actors in the village who provide food needs. The government is also encouraging the development of thematic villages that focus on the production of certain commodities, such as eggs, chicken, fish, and vegetables, so that the domestic food supply chain is stronger.

In an effort to improve the quality of life of rural communities, the Ministry of Villages collaborates with various institutions to ensure that Village Funds are managed transparently and accountably.

Strict supervision is carried out through collaboration with the Financial Transaction Reports and Analysis Center (PPATK), the Attorney General’s Office, and the Indonesian Police. In addition, the government is also encouraging the establishment of complaint centers in village offices to reduce the number of cases of violence against women and children, and to create a more family-friendly environment.