Ahead Of Ramadan, The Government Is Urged To Maintain People's Purchasing Power

JAKARTA Researcher from the Indonesian Center of Reform on Economics (Core), Eliza Mardian hopes that the Prabowo Subianto government will be able to maintain people's purchasing power ahead of Ramadan and Eid Al-Fitr 2025.

According to him, the moments of Ramadan and Eid which took place throughout March 2025, will be an important factor in increasing demand in various sectors. Therefore, the disbursement of THR and the 13th salary for ASN, as well as various expenditure incentives during Ramadan and Eid, will increase people's purchasing power and encourage consumption.

"Although people's purchasing power has not fully recovered, this policy can help maintain stability in economic growth. With consumption boosts during Ramadan and Eid, first-quarter economic growth is expected to remain in the positive range," Eliza said in a statement, Sunday, February 23, 2025.

He stated that the government's policy of maintaining people's purchasing power in the first quarter of 2025 could have a positive impact on the national economy. This is because various economic stimulus and social assistance play an important role in supporting public consumption, which is the main contributor to Indonesia's economic growth.

These policies are very strategic to maintain people's purchasing power, especially for the middle and lower class. With consumption, which is still the main driver of our economy, these steps can help ensure economic stability at the beginning of the year," he added.

In addition, the government must also prioritize the creation of formal jobs as a further step in strengthening people's purchasing power. "Because, with more formal employment available, the purchasing power of the middle class will increase which will ultimately strengthen consumption and encourage economic growth to a higher level.

With a combination of stimulus policies, social assistance, and job creation, the government can maintain the momentum of economic growth by early 2025. This strategy can be taken to ensure that economic growth remains solid and inclusive, "explained Eliza.

As is known, President Prabowo Subianto announced eight strategic policies to encourage economic growth in the first quarter of 2025. This policy is designed to increase people's purchasing power and maintain the momentum of national economic growth.

The eight policies are the impact of the increase in the UMP, optimization of social assistance, early THR disbursement, Ramadan and Eid stimulus, economic stimulus packages, optimization of the MBG program, increasing distribution of KUR and optimal realization of rice harvest.