Government Strengthens People’s Purchasing Power Through Targeted Economic Stimulus

By: Ricky Rinaldi

The government is preparing a special economic stimulus package for the poor and vulnerable groups to maintain purchasing power while strengthening social resilience amidst global economic dynamics. This policy represents President Prabowo Subianto’s strategic move to ensure that economic development remains oriented towards social justice and equitable distribution of benefits across all levels of society.

Coordinating Minister for Economic Affairs Airlangga Hartarto explained that this economic stimulus is designed with a cross-sectoral approach so that its implementation is not only for consumption assistance but also encourages increased productive capacity among the poor. The government, he said, will combine social assistance programs with economic empowerment, including support for ultra-micro capital, subsidies for staple food prices, and incentives for community economic activities at the village level. This integrated approach is considered the most effective way to maintain purchasing power without placing an excessive fiscal burden.

In line with this, Finance Minister Purbaya Yudhi Sadewa emphasized that this stimulus is focused on fiscal sustainability and efficient budget allocation. The government is adjusting non-priority spending items to strengthen support for sectors directly impacting low-income communities. According to him, the government aims for every rupiah in the stimulus to have a multiplier economic impact, not only on short-term consumption but also on increasing household productivity.

Purbaya also explained that the aid distribution system is now more transparent with the use of a unified database and the integration of national identification numbers. The government ensures that no poor family is overlooked, while simultaneously reducing the potential for overlapping beneficiaries. Furthermore, the digitization of aid distribution also minimizes the opportunity for irregularities and expedites direct disbursement to recipients’ accounts.

Policy analysis shows that the government’s steps in preparing this stimulus are a form of adaptation to the challenges of a fluctuating global economy. By maintaining fiscal stability and strengthening public purchasing power, the government seeks to prevent the further impact of pressures on food and energy prices that could impact the national poverty rate. This approach is not only responsive to the short-term situation but also aligns with the vision of inclusive development that emphasizes social justice and people’s economic independence.

The stimulus package is also expected to strengthen local economic structures. By supporting small businesses, the agriculture, fisheries, and home industries sectors, the government is striving to encourage the creation of sustainable domestic value chains. This step aligns with the current administration’s priority of downstreaming the people’s economy, where local resources are optimized to generate added value and create new jobs at the community level.

From an implementation perspective, inter-ministerial coordination is key to ensuring the stimulus policy is well-targeted. The government has tasked each regional government with conducting multi-layered verification of beneficiaries, involving village officials down to the neighborhood unit (RT/RW). This participatory approach is considered effective in ensuring that assistance truly reaches those in need, while simultaneously strengthening public trust in state policies.

In a social context, the stimulus package also serves as a buffer against potential post-pandemic economic inequality. The government understands that some poor and vulnerable communities still face difficulties in fully recovering. Therefore, the policy direction has shifted from emergency assistance to sustainable empowerment—creating jobs, strengthening access to finance, and expanding skills training for low-income groups. This demonstrates that the stimulus is not merely a fiscal instrument, but also a long-term social investment.

Beyond the economic aspect, this policy has strategic political implications in strengthening national stability. By safeguarding the welfare of lower-income communities, the government indirectly strengthens public trust in the state’s performance. This step also reflects President Prabowo’s continued policy direction, which favors the common people without neglecting the principles of sound financial governance.