Encouraging Economic Growth, Government Provides Economic Stimulus Packages

Coordinating Minister for the Economy Airlangga Hartarto (photo: between)

JAKARTA - Global economic conditions are projected to grow in the range of 2.7 percent to 3.3 percent by 2025.

However, Coordinating Minister for Economic Affairs Airlangga Hartarto said that a number of risks of uncertainty are still a challenge that causes global economic dynamics ranging from uncertainty in economic and geopolitical policies, economic slowdown in a number of countries, high inflation in a number of countries, pressure on global financial markets, climate change, to supply chain disruption.

To achieve the economic growth target by 2025, Airlangga said that the Government had prepared a number of economic stimulus in the first quarter of 2025, including optimizing social assistance in February and March 2025, disbursing holiday allowances for civil servants and private employees in March 2025.

Next, other economic stimulus, namely the Ramadan and Eid Al-Fitr stimulus packages including discounted plane tickets, discounted electricity rates and exemption from automotive VAT and property, as well as free nutritious food programs.

In addition, Airlangga said that the Government also continues to strive to increase competitiveness and encourage long-term economic transformation.

According to him, the strategic steps taken by the Government include the Food and Energy Security Program, the Optimization of SOE Management through Danantara, the Implementation of Housing Financing Liquidity Facilities (FLPP), Development of Industrial Estates and Special Economic Zones (KEK), Labor Intensive Industry Investment Credit, Optimization of the Tax Holiday Policy and Tax Allowance to Maintain the Investment Climate, Expansion of Domestic Retention on Natural Resources Export Results, Implementation of the Establishment of Bullion Bank, and Strengthening International Economic Cooperation.

"Then from downstreaming, we hope that not only nickel, other commodities will also thrive. In our opinion, downstreaming is one of the key factors for success," explained Airlangga.

Airlangga also mentioned that the Development of Special Economic Zones (SEZs) such as the Gresik SEZ and Kendal SEZs also play a role in downstream efforts to create added value and strengthen competitiveness.

Where in 2024, SEZ has contributed to attracting investment of up to IDR 82.6 trillion and creating 42,930 jobs.

Regarding the commitment to environmentally friendly energy, Airlangga said that Indonesia continues to accelerate the transition of environmentally friendly energy, one of which is the use of electric vehicles.

Airlangga said that Indonesia is one of the countries that has a competitive advantage in electric vehicles because it has superior potential resources to produce batteries.

As part of efforts to transition environmentally friendly energy, Airlangga said that Indonesia had previously launched a Just Energy Transition Partnership (JETP).

Airlangga also conveyed that one of the policies that had just been established by the Government was related to the Natural Resources Export Result Foreign Exchange (DHE), namely the stipulation of Government Regulation Number 8 of 2025 where the Government decided to increase the obligation to place Natural Resources Foreign Exchange (DHE SDA) in the Indonesian Financial System to 100 percent, with a period of 12 months from the placement in the Special DHE SDA Account.

"This regulation only applies to the mining sector (excluding oil and gas), plantations, forestry, and fisheries. For the oil and gas sector, it still refers to the provisions of PP Number 36 of 2023," he said.