DPR Highlights Economic Stimulus, Must Help Small And Secondary Class Residents

Illustration of the umkm creative economy (ANTARA)

JAKARTA - Member of Commission XI DPR RI Charles Meikyansah assessed that the policy of economic stimulus packages worth Rp 24.44 trillion from the Government for the June 2025 school holiday period has the potential to encourage the movement of the people's economy. He assessed that these policies could increase consumption and community activities in various regions.

This government step shows partiality to efforts to maintain people's purchasing power which has recently been sluggish. The stimulus package presented by the Government can encourage the movement of the people's economy, especially in the informal, tourism, transportation, and micro-business sectors," said Charles Meikyansah, Wednesday, June 4.

As is known, the Ministry of Finance (Kemenkeu) announced that the Government will provide economic stimulus packages during June to July 2025 with a total allocated budget of IDR 24.44 trillion. The details of the budget consist of IDR 23.59 trillion from the APBN and IDR 0.85 trillion from non-APBN.

The purpose of providing this incentive is to maintain Indonesia's economic growth in the second quarter of 2025 approaching 5 percent. The economic stimulus package consists of five policies.

First, a transportation discount consisting of a 30 percent discount on train tickets, a 50 percent discount on sea transportation tickets, and a government-borne VAT facility (DTP) for airplane tickets of 6 percent. The budget prepared to provide the discount is IDR 940 billion.

Second, a 20 percent discount on toll rates with a target of 110 million motorists with a budget of IDR 650 billion. Third, provide support to the most vulnerable and poor groups through the thickening of social assistance by providing additional food card assistance worth IDR 200,000 per month and food assistance in the form of 10 kg per month.

Fourth, provide wage subsidy assistance (BSU) worth IDR 300,000 per month to 17.3 million workers who have a salary of less than IDR 3.5 million per month or below the provincial/district/city minimum wage.

Fifth, the Government will extend the discount on work accident insurance (JKK) contributions by 50 percent for 2.7 million workers in 6 labor-intensive industrial sub-sectors for 6 months. The budget comes from non-APBN amounting to Rp 200 billion.

According to Charles, the five economic stimuli provided by the Government are in accordance with the needs of the community. However, he also reminded the importance of the relevant ministries clarifying the long-term direction and impact of this policy so that the benefits are not only temporary.

"If directed properly, this stimulus can be a trigger for wider populist economic movement," Charles explained.

The NasDem legislator from the East Java IV electoral district added that the dominant economic stimulus is consumptive, such as discounted transportation and direct assistance is a quick response from the Government of economic challenges faced by the community. Charles also encouraged that this economic stimulus package policy be equipped with support for the productive sector.

"Short-term stimulus can help, but our economic challenges require a more strategic and sustainable approach. Don't let this good effort not touch the root of the problem in the field," he said.

Charles also emphasized that the community, especially vulnerable groups and small business actors, need medium-term economic certainty. Therefore, he hopes that the Government can strengthen intervention in sectors that produce added value, such as agriculture, MSMEs, and labor-intensive sectors.

"This step is expected to create a wider double effect, as well as strengthen people's resilience to the economic turmoil that may still take place," Charles explained.

On the other hand, this member of the House of Representatives' Finance Commission is of the view that economic stimulus also needs to consider the conditions of the middle class which are now starting to show vulnerability. Moreover, said Charles, not a few middle class groups are directly affected by the rise of layoffs (PHK) and decreased income, especially in the industrial, service and creative sectors.

"We also need to look at the middle class who are now facing pressure. We hope that the middle class community can also feel an inclusive economic stimulus so that it can strengthen national economic resilience as a whole," he said.

Charles said protection for the middle class should be a concern. Because when the middle class is reduced, it means weakening people's purchasing power, decreasing domestic consumption, and increasing economic vulnerability to external shocks.

"It should be remembered that the middle class has been the main support for domestic consumption. Keeping the middle class group strong means we maintain stability and sustainable economic growth," Charles said.

Apart from that, Charles appreciated one of the economic stimulus programs, namely Wage Subsidy Assistance (BSU) which is intended for low-income workers. He hopes that this program will remain consistent and continue to be evaluated in order to maintain employment stability amidst global economic uncertainty.

"We hope that the Government will align this stimulus policy with a more comprehensive and long-term resilience-oriented recovery strategy," he explained.

"That way, the stimulus is not only a temporary buffer, but also the main driver of a more resilient and competitive populist economy," concluded Charles.