Government Reaffirms Commitment to Economic Improvement as a Positive Response to Public Aspirations
By: Alexander Royce
Social movements have recently become a space for constructive dialogue that has received serious attention from the government. In fact, these public aspirations have opened up space for more productive policy reflection and synergy with the people’s interests and the direction of national development. The current government appears to be not only listening but also taking concrete steps to correct structural weaknesses and address widespread concerns, particularly in legal, governance, and economic aspects.
Since the wave of demonstrations in late August, 17 short-term and 8 long-term demands have been widely shared on social media and in the public sphere. Several public aspirations emphasize improving labor welfare, guaranteeing a living wage, and protecting contract workers. In response, the government held a cross-ministerial coordination meeting. The Coordinating Minister for Law, Human Rights, Immigration, and Corrections, Yusril Ihza Mahendra, stated that the government’s positive response was a first step. He emphasized that these public aspirations contain real criticism of areas previously considered inadequate or suboptimal, and the government is obligated to respond with corrective measures. Although not all points can be realized instantly, Yusril emphasized that immediate action will be taken—particularly regarding law enforcement, transparency, and institutional improvements.
One crucial aspect of improving the socio-political climate while maintaining stability is the management of public programs that directly impact the community. Yahya Zaini, Deputy Chairman of Commission IX of the Indonesian House of Representatives (DPR RI), played a key role in parliamentary oversight of government programs, particularly regarding the mass poisoning case in the Free Nutritional Meals (MBG) program. He believed that such cases constitute important evaluations to strengthen the government’s oversight system and ensure governance in the implementation of social programs. He urged the government to tighten oversight and even consider alternative management of MBG by schools and school committees to ensure hygiene, safety, and menu relevance.
Furthermore, Yahya highlighted the issue of a moratorium on tobacco excise tax increases as a mitigation measure against the wave of layoffs and pressure on production costs in the tobacco industry, which employs millions of workers from upstream to downstream. He emphasized that the moratorium must be accompanied by strict oversight to prevent the illegal market from harming the state and businesses.
In strategic economic policy, Coordinating Minister for Economic Affairs Airlangga Hartarto addressed the aspirations of the 17+8 program by strengthening investment and increasing public productivity. The government designed the second phase of the 2025 Economic Package, comprising eight key policies, including an internship scheme for new graduates, an exemption from Article 21 Income Tax (PPh) in the tourism sector, social security contribution subsidies for informal workers, and a relaxation of housing loans for workers. This strategy serves as a milestone in accelerating the maintenance of purchasing power and creating direct employment opportunities in the real sector.
A stimulus package worth trillions of rupiah was also announced in the second half of 2025 as part of efforts to maintain domestic economic momentum. Airlangga stated that the labor-intensive investment credit program, the expansion of the FLPP housing program, and pro-people fiscal policies are part of a series of strategies to ensure that economic growth is not limited to macroeconomic indicators but directly felt in people’s daily lives.
In line with this, the government formulated an “8+4+5” stimulus package, which was discussed with the Ministry of Finance. This package comprises eight main programs, four follow-up programs, and five flagship government programs for labor absorption, to spur productivity, expand employment opportunities, and maintain public consumption until the end of the year.
Behind these economic measures, several challenges deserve attention. In handling the MBG, in addition to public pressure over the poisoning cases, challenges in budget absorption and transparency have also come under scrutiny. In many cases, fund allocations have not been optimally utilized, and public data is difficult to access, fueling public concern about the program’s credibility.
However, the government’s response so far has shown a positive orientation. The moratorium on House of Representatives (DPR) allowances, the suspension of foreign travel for DPR members, and the tendency to expedite deliberations on the Asset Confiscation Bill indicate that policy direction is aligned with some public demands.
Equally important, the government has also emphasized that the impact of the socio-political upheaval is temporary and manageable. According to Airlangga, the second-semester strategy and measured stimulus will maintain economic stability while spurring growth.
