President Prabowo Prepares Strategic Policy to Boost National Economy

President Prabowo Subianto announces the government’s policy to strengthen national economic resilience through mandatory deposit of Natural Resources Export Proceeds (DHE SDA), in a press conference at the Merdeka Palace, Jakarta, on Monday (02/17/2025). (Photo: BPMI of Presidential Secretariat)

President Prabowo Subianto announced a series of strategic policies aimed at maintaining stability and increasing people’s purchasing power in order to boost economic growth. This was conveyed by the President in a press conference on the obligation to deposit Export Proceeds from Natural Resources (DHE SDA) in the country, on Monday, February 17, 2025 at the Merdeka Palace, Jakarta.

“In the first quarter of this year, policies aimed at encouraging economic growth include, first, the 2024 UMP (Provincial Minimum Wage) increase policy; second, optimization of social assistance distribution in February and March 2025; third, the disbursement of THR (Eid Festivity Allowance) for state civil apparatus and private sector in March 2025; fourth, stimulus in the month of Ramadan, namely discounted airplane ticket fare, discounted toll tariffs, shopping discounts, Eid homecoming tourism programs, (and) food price stability,” the President said.

Furthermore, the President said that the Government has prepared strategic policies in terms of preparing economic stimulus packages, as well as optimizing the free nutritious meal program (MBG), distributing People’s Business Credit (KUR), and realizing the Rice Harvest. The President also said that there are reports of a significant increase in rice production.

“Economic stimulus packages (such as) electricity tariff discounts, Government-borne VAT for property and automotive purchases, Government-borne luxury goods tax for electric and hybrid vehicles, Government-borne tax subsidies for electric motorcycles, Government-borne Income Tax for labor-intensive sectors, optimization of free nutritious meal programs, optimization of KUR distribution, maximized rice harvest,” explained the Head of State.

In addition to short-term policies, President Prabowo also highlighted efforts to transform the economy through several competitiveness-boosting policies, including the free nutritious meal program, food and energy security programs, and optimization of State-owned Enterprises (SOEs) management through Danantara.

“Optimizing the SOEs management through a consolidation into a national investment fund which we will launch on  February 24, namely Danantara. Danantara is a consolidation of all our economic strengths in the management of SOEs and will be known as Danantara (Daya Anagata Nusantara),” he said.

Furthermore, President Prabowo said that the Government is preparing a Housing Financing Liquidity Facility (FLPP) policy, industrial estate development, investment credit for labor-intensive industries, a policy on natural resources Export Proceeds, and the establishment of a gold bank.

“We will establish a gold bank, as we currently do not have a bank for our gold in Indonesia. Our gold is mostly mined and flows abroad. We now aim to have a dedicated gold bank in Indonesia, God willing, we will inaugurate it on February 26,” said the President.

At the global level, President Prabowo stated that Indonesia is also accelerating its membership in BRICS, finalizing the Indonesia-Canada Comprehensive Economic Partnership Agreement (CEPA), the European Union-CEPA, and continuing the registration process with the Organization for Economic Cooperation and Development (OECD).

“We will also finalize the CEPA, which is basically a free trade area that lower tariffs for each other’s goods. Then, we are also continuing our registration with the OECD, the lastly, we also want to quickly complete Indonesia-EU CEPA cooperation,” he said. (BPMI of Presidential Secretariat/ABD) (APN/RAS/LW)