Gov’t to Launch Eight Development Acceleration Programs in 2025

President Prabowo leads cabinet meeting with Red-White Ministers at Merdeka Palace, Jakarta, on Monday (15/09) (Photo by: BPMI of Presidential Secretariat)

The Government is preparing eight development acceleration programs to be launched this year, as stated by Coordinating Minister for Economic Affairs Airlangga Hartanto following the cabinet meeting led by President Prabowo Subianto at Presidential Palace, Jakarta, on Monday (09/15).

Airlangga stated that the initial program to be launched is an internship program for university graduates who have graduated for a maximum of one year. The program targets 20 thousand interns holding bachelor’s degree diplomas, three year degree (D3) diplomas or other equivalent diplomas to be placed in industrial sectors. They will receive a stipend equivalent to provincial minimum wage (UMP) during their six-month internship.

“The interns will be involved in a link-and-match program and partner with industrial sectors. For the initial stage, as many as 20 thousand interns will work and receive a stipend equivalent to UMP during their six-month internship. A budget worth Rp198 billion for the program is already prepared,” Airlangga explained.

The Government will also expand income tax (PPh 21) incentives covered by the government. Previously, the scheme targeted the work-intensive sectors. “[This year] this scheme is extended to tourism sectors, [including] hotels, restaurants, and cafés, targeting 552 thousand workers. They will receive 100% PPh 21 incentives for the rest of the 2025 fiscal year, or three months, and the budget allocated for this scheme is worth Rp120 billion,” added Airlangga.

He also mentioned that the Government will continue the food aid program, including the distribution of 10 kg rice packages from October to November, slated to be evaluated in December. “This program needs a funding of Rp7 trillion,” said Airlangga.

With regard to social protection, the Government is preparing 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 731,361 workers will receive a discount of 50% on their insurance premiums. This scheme requires a budget of Rp36 billion, prepared by the Workers Social Security Agency (BPJS Ketenagakerjaan).

“From JKK, each worker will receive death compensation as much as 48 times his/her salary, disability compensation as much as 56 times his/her salary, a Rp174 million scholarship for two children, and life insurance,” Airlangga explained.

The Government is also preparing additional service benefits (MLT) from BPJS Ketenagakerjaan’s housing program by reducing the credit rate from BI Rate +5% to BI Rate +3% for financing workers’ housing, including paying for their instalments and down payments, as well as reducing the credit rate from BI Rate +6% to BI Rate +4% for providing funding for developers. This scheme is also supported by the Financial Information Service System (SLIK) managed by the Financial Services Authority (OJK).

“This scheme requires Rp150 billion covered by BPJS, targeting as many as one thousand beneficiaries this year. The number of beneficiaries will gradually be increased next year to support President Prabowo’s program to provide 3 million houses,” said Airlangga.

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 from September to December 2025, targeting 609,465 beneficiaries. The budget allocated for the Ministry of Public Works’ program reaches Rp3.5 trillion, while that for the Ministry of Transportation’s program reaches Rp1.8 trillion.

With regard to regulations, the Government is accelerating the simplification of Government Regulation Number 28 of 2025 by promoting the integration of Detailed Spatial Plans (RDTR) into the Online Single Submission (OSS), which is supported with data provided by the Geospatial Information Agency.

“As much as Rp3.5 billion is allocated for each RDTR. The Geospatial Information Agency will provide data, and thus, the OSS will have 20 business days to wait for the data provision. If the target is not met, the program will automatically start. This initiative requires Rp1 trillion,” Airlangga stated.

Lastly, the Government is initiating a pilot project to develop ecosystems for gig economy by providing coworking spaces in Jakarta, which will be expanded to West Java, Central Java, East Java, Banten, Bali, Manado, Makassar, and Batam. “For Jakarta, the budget is ready, and we will also encourage the [Ministry of] Creative Economy to finance the project,” Airlangga added.  (BPMI of Presidential Secretariat) (RD/TM)