President Prabowo’s Eight Strategic Policies Effectively Encourage Economic Equality in Indonesia

The government continues to show a strong commitment to encouraging economic equality throughout Indonesia. President Prabowo Subianto announced eight strategic policies that not only aim to increase national economic growth, but also ensure that their impact can be felt by all levels of society. These policies are designed to address economic challenges and accelerate the achievement of more equitable prosperity throughout the country.

The first step taken is to increase the provincial minimum wage (UMP) in 2024. This wage increase is expected to increase domestic consumption and strengthen overall economic growth. The government understands that strengthening purchasing power is a key factor in creating a sustainable economic balance. This policy also provides a significant boost to people’s purchasing power, especially for formal sector workers.

In addition, optimizing social assistance is one of the policies that has received great attention. The Family Hope Program (PKH), Basic Food Card, Smart Indonesia Program (PIP), Smart Indonesia Card (KIP), and Village Fund Direct Cash Assistance (BLT-DD) will have their distribution accelerated. With this acceleration, people in need can immediately feel the benefits, so that it can reduce the economic gap more effectively.
Another step that is also highly appreciated is the earlier disbursement of holiday allowances (THR) for state civil servants (ASN) and private workers. The disbursement carried out in March 2025 provides a wider opportunity for the community to better prepare for Eid needs. This policy not only improves worker welfare, but also helps drive the economy, especially in the trade and service sectors.
Economic stimulus during the momentum of Ramadan and Eid 2025 is also a strategic breakthrough. The government provides various incentive programs such as airline ticket discounts, toll rate discounts, and shopping promos through the 2025 Harbolnas program, EPIC Sales 2025, and BINA Diskon 2025.
Not only that, the free homecoming program initiated by the Ministry of Tourism and BUMN is a real form of government attention in supporting community mobility while driving the regional economy.
An equally important policy is the provision of an economic stimulus package that includes electricity tariff discounts, tax incentives for property and electric vehicle purchases, and electric and hybrid vehicle tax subsidies. Income tax (PPh) for labor-intensive sectors is also borne by the government. With this policy, the industry can operate more optimally and create new jobs, thus further accelerating economic equality.
The Free Nutritious Meal Program has also received widespread attention because it is considered capable of significantly increasing people’s nutritional consumption. The government ensures that this program runs effectively by involving various parties, including Village-Owned Enterprises (BUM Desa). This step is expected to not only improve public health but also have a positive impact on the economy at the village level.
In addition, the acceleration of the distribution of People’s Business Credit (KUR) is a strategic solution in encouraging the development of small and medium enterprises (SMEs). With easier access to financing, business actors can accelerate their business expansion and create more jobs. The government is committed to ensuring that this policy runs well so that its benefits can be felt by more people.
Finally, the realization of a significantly increased rice harvest has a positive impact on food price stability. This success is the result of integrated policies in the agricultural sector, including support for farmers in the form of subsidies and easier access to modern agricultural technology. The government continues to strive to ensure that food production is maintained to support national food security. The Director of Regions, Urban Areas, and State Borders at the Ministry of Home Affairs, Dr. Drs. Amran, MT, emphasized that the policies implemented are in line with the principles of sustainable development. The Urban Service Standards (SPP) currently being prepared aim to improve the quality of services in various sectors, including infrastructure and accessibility. The implementation of this policy is expected to have a long-term impact on community welfare.