Government Distributes Stimulus to Boost Economic Growth and Equity in 2025

JAKARTA – The Prabowo-Gibran government has disbursed a number of stimuli to encourage equitable economic growth in 2025. Indonesian President Prabowo Subianto announced eight strategic policies aimed at increasing people’s purchasing power and accelerating economic growth in the first quarter of 2025.

“The government will continue to implement strategic policies to encourage economic growth,” said President Prabowo

The first policy relates to the increase in the provincial minimum wage (UMP) in 2024 which is expected to significantly increase people’s purchasing power.

Furthermore, optimization of social assistance is carried out through the acceleration of the distribution of the Family Hope Program (PKH), Basic Food Cards, the Smart Indonesia Program (PIP), the Smart Indonesia Card (KIP), and Direct Cash Assistance from Village Funds (BLT-DD).

The government is also accelerating the disbursement of holiday allowances (THR) for state civil servants (ASN) and private workers in March 2025.

In addition, various Ramadan-Lebaran 2025 stimuli have been prepared, such as airline ticket discounts, toll rate discounts, and shopping promos from various national programs.

Various economic stimulus packages are also provided through electricity tariff discounts, property and electric vehicle tax incentives, and electric and hybrid vehicle tax subsidies.

The government also covers income tax (PPh) for labor-intensive sectors to increase industrial competitiveness.

The Free Nutritious Meal Program is optimized as an effort to increase people’s nutritional consumption.

In addition, the acceleration of the distribution of People’s Business Credit (KUR) is carried out to provide faster access to financing for small business actors.

“We will optimize thematic villages so that they can support the supply chain of the nutritious lunch program,” said the Minister of Villages and Development of Disadvantaged Regions, Yandri Susanto.

In the agricultural sector, the government ensures an increase in rice production to maintain food price stability.

“There have been reports that rice production has increased significantly,” said Prabowo.

The Directorate General of Regional Administration Development, Ministry of Home Affairs, also drafted the Regulation of the Minister of Home Affairs on Urban Service Standards (SPP) to ensure economic equality and social welfare.

“Urban services must guarantee social justice, economic welfare, and environmental sustainability,” said the Director of Regions, Urban Areas, and State Borders, Ministry of Home Affairs, Dr. Drs. Amran, MT.

The government is also collaborating with various parties in efforts to strengthen village development, including the Indonesian National Armed Forces (TNI) to ensure that the program runs optimally.

“With this MoU, we will strengthen cooperation to support food security, where a minimum of 20 percent of Village Funds are allocated for this sector,” explained Yandri Susanto.

In the future, cooperation with various parties will continue to be expanded to ensure that village development runs according to the vision of economic equality and poverty alleviation in Indonesia. (*)