Gov’t Ensures Well-Targeted Economic Stimulus Package

Cabinet Secretary Teddy Indra Wijaya attends a limited coordination meeting with Red and White Cabinet members, on Wednesday (10/01). (Photo: special collection)

Cabinet Secretary Teddy Indra Wijaya attended a limited coordination meeting with Red and White Cabinet members on Wednesday (10/01) at Danantara Office. The meeting discussed the progress of the implementation of 2025 Economic Package that has been launched by President Prabowo in the middle of September 2025. The 2025 Economic Package consists of 8 acceleration programs in 2025, 4 programs to be carried on in 2026, and 5 government priority programs for labor absorption (8+4+5).

“As we approach the first year of our administration, the Government will ensure that all programs and budgets that have been planned truly bring benefits and are enjoyed by the people in need as targeted,” Cabinet Secretary said. He added that the meeting also encouraged budget use acceleration and optimization in all ministries and institutions.

Menawhile, Coordinating Minister for Economic Affairs Airlangga Hartarto believes that various strategic policies adopted by the Government will be able to boost national economic growth.

“The Government is optimistic that the economic growth of 5.2 percent, inshaAllah, can be achieved,” Airlangga stated in his press statement after the limited coordination meeting.

Airlangga also mentioned a number of indicators showing good results, among others, inflation rate, purchasing managers’ index of manufacture, and trade balance surplus.

Regarding the implementation progress of the 8+4+5 program included in the 2025 Economic Package, the 1-year national internship program for fresh graduates will be open starting in October 15, 2025 by involving state enterprises or private sector and is targeted to reach 20,000 beneficiaries.

Concerning the expansion of Article 21 Income Tax Borne by the Government (PPh 21 DTP) for workers in tourism industry, the Government has prepared to issue a Minister of Finance Regulation. PPh 21 DTP will cover 552,000 workers of hotels, restaurants, and cafés with salary under Rp10 million.

“We also prepare food aid for 18.3 million family beneficiaries which will be launched soon, including rice and Minyakita cooking oil, from initially 2 liters to be upgraded to 4 liters,” Airlangga said.

The next program, financial aid for work accident insurance (JKK) and life insurance (JKM) for non-wage-earning workers, such as both online and non-online motorcycle taxi drivers, drivers, couriers, and logistics workers.  As many as around 730,000 workers will receive a discount of 50 percent on their insurance premiums.

Furthermore, additional service benefits from BPJS Ketenagakerjaan’s housing program is targeting 1,050 housing units. The Government is also preparing the Cash for Work program that will be carried out by the Ministry of Public Works and the Ministry of Transportation.

The Government is accelerating the simplification of Government Regulation Number 28 of 2025 that will regulate risk-based business permit to ease investment by promoting the integration of inter-ministries/institutions system and enhance the implementation of Detailed Spatial Plans (RDTR) into the Online Single Submission (OSS) starting from  October 5.

On labor absorption, the Government has five priority programs, namely Village/Sub-District Red and White Cooperatives targeting more than one million wokers by December 2025, Red and White Fishermen’s Villages targeting 200,000 workers in the long run, revitalization of fish ponds in the northern coast of Java Island involving 168,000 workers, modernization of fishermen’s ships targeting 200,000 workers, and replanting people’s farms targeting to absorb 1.6 million workers within two years.

The limited coordination meeting also discussed additional stimulus to boost economic growth and people’s purchashing power, including the moment prior to Christmas and New Year holidays. Other Government strategic programs, such as Free Nutritious Meal, top school, and support for micro, small, and medium enterprises have also been discussed.

“The Government will give additional stimulus in the fourth quarter. The President gave direction that the additional stimulus should reach the fourth decil or more than 30 million family beneficiaries,” theCoordinating Minister remarked. (HIM/UN) (AW/MMB)