Hipmi Hopes That The Government's Stimulus Package Will Be Able To Encourage People's Purchasing Power

Chairman of the Central Management Agency (BPP) Hipmi Akbar Himawan Buchari. (Photo: Doc. Antara)

JAKARTA - The Indonesian Young Entrepreneurs Association (Hipmi) hopes that the stimulus package issued by the government will be able to encourage increased people's purchasing power and maintain national economic growth to remain stable.

Chairman of the Central Executive Board (BPP) Hipmi Akbar Himawan Buchari appreciated the government's rapid action in dealing with economic uncertainty.

"This policy deserves thumbs up. Moreover, the existing data shows that the economy is not doing well," Akbar said in a statement in Jakarta, quoted by Antara, Wednesday, June 4.

Referring to data from the latest Central Statistics Agency (BPS), said Akbar, there was a deflation of 0.37 percent in May 2025. This is the third deflation after January 0.76 percent, and February 0.48 percent.

According to Akbar, deflation is a decrease in people's purchasing power. This is in accordance with the Consumer Price Index (JCI) which fell from 108.47 in April to 108.07 in May 2025.

"People are still holding back spending. For what reason, I can't confirm yet. Is waiting until the economy feels completely recovered, or is there really no money to spend," he said again.

However, Akbar assessed, stimulus packages worth Rp. 24.44 trillion can be a driving force for people to buy. Moreover, he said, the momentum for school children's holidays so that the tourism industry can get a multiplier effect.

"The stimulus given is in the form of discounts on modes of transportation, toll rates, and wage subsidies. This stimulus consists so that people's mobility remains high during school holidays," said Akbar.

Although it is a blessing in itself for the tourism industry, Akbar is not immediately relieved. Because, according to him, this stimulus package is a short-term effort, while the global economy is still uncertain when it will recover.

"I remember very well, the Minister of Finance (Minister of Finance Sri Mulyani) in the DPR once said 'the world economy will continue to be overshadowed by uncertainty. Meanwhile, this stimulus package is only given for June and July," said Akbar.

According to him, the need for the issuance of long-term instruments. Such as incentives that can create new economic activity and are able to increase productivity and economic efficiency.

Akbar encourages a comprehensive improvement of the investment climate with massive deregulation, so that investment flows increase, job opportunities are wide open, and employment can grow significantly.