Government Prepares Strategic Steps To Encourage Purchasing And Consumption Power In Semester II-2025

JAKARTA - The government has prepared several concrete programs to maintain people's purchasing power and strengthen domestic consumption during the second semester of 2025.

Coordinating Minister for Economic Affairs Airlangga Hartarto said that the policies prepared were not only macro, but immediately touched the community's need to maintain national economic growth.

Airlangga explained that in the field of business financing, the government is accelerating the implementation of Labor Intensive Investment Loans which are directed to support the revitalization of production machines, especially in the labor-intensive industrial sector.

Meanwhile, in the tourism sector, support is provided through the implementation of various national-scale events and the promotion of integrated tour packages in order to welcome the Christmas and New Year's 2025 2026 holidays.

In addition, the public will also enjoy various incentives in the form of discounted transportation rates, including trains, ships, and toll roads.

As for the housing sector, the government has increased the target of the Housing Financing Liquidity Facility (FLPP) from the previous 220,000 units to 350,000 housing units.

Next, the Housing Credit program and Government-Borrowed Value Added Tax incentives (PPN DTP) of 100 percent will continue in the second semester.

Then, the government also distributed Self-Help Housing Stimulant Assistance to 41,000 houses, as well as expanding access to housing for workers through the BPJS Employment program.

Airlangga also highlighted the acceleration of the implementation of the Free Nutrition Food Program, until September 2025, this program is targeted to reach 17,000 Nutrition Organizer Education Units (SPPG) with 51 million recipients. This number will be increased to 25,000 SPPGs and 75 million recipients in November 2025.

"All of these programs are designed to drive the people's economy directly while maintaining the momentum of domestic consumption which is the backbone of our economic growth," he explained in a press conference at the Indonesia Stock Exchange Building, Monday, September 1.

With these steps, he said that the government is optimistic that it can encourage national economic growth to reach the target of 5.0 percent to 5.2 percent by the end of 2025.

"With solid economic fundamentals, the government believes that the socio-political dynamics that occur in the economy are short-term and the government continues to encourage optimism for the medium and long term. To achieve the growth target of 5-5.2 percent, the government continues to prepare future strategies," he said.

He conveyed that the government had prepared a comprehensive strategy that would begin in the second semester of 2025.

"The increase in investment by IDR 924 trillion, the increase in imports of 32.5 percent of capital goods year-on-year, state-owned capex, and government capital expenditure by 17.94 percent in the first semester will boost productivity until next year," he said.

He added that the economic stimulus in Semester I amounted to IDR 61 trillion which has proven to have a positive impact on growth will continue with the economic stimulus of Semester II.

In addition, Airlangga said that the Government also encourages the realization of state spending at least 25 percent of the total APBN or Rp694 trillion, and accelerates the realization of large K/L expenditures in encouraging growth.

Furthermore, Airlangga appealed to investors and market players to understand the current conditions.

He considered that the demonstrations that occurred in the last few days were part of the dynamics of democracy guaranteed by the constitution, as long as they were carried out in an orderly and peaceful manner.

"We hope that investors and issuers understand that the submission of aspirations is guaranteed in a democratic country as long as it is done well," he said.