In a sweeping effort to accelerate inclusive growth, the Indonesian government has launched the 2025 Economic Package, a multi-pronged stimulus targeting employment, social welfare, and strategic sectors. Coordinating Minister for Economic Affairs Airlangga Hartarto announced the initiative following a high-level meeting with President Prabowo Subianto. With 17 programs spanning internships, tax relief, housing, and digital urban development, the package reflects a bold pivot toward people-centered recovery.
Key Facts & Background:
- The 2025 Economic Package comprises 17 programs:
- 8 acceleration programs for 2025
- 4 continuation programs for 2026
- 5 employment absorption initiatives
- Key 2025 acceleration programs include:
- Paid internships for 20,000 fresh graduates, with monthly stipends of Rp3.3 million for 6 months (Rp198 billion budget)
- Income tax relief (PPh 21) for 552,000 tourism sector workers (Rp120 billion budget)
- Food assistance: 10 kg of rice per beneficiary for October–November 2025 (Rp7 trillion budget)
- Social security subsidies for 731,361 informal workers (ojek drivers, couriers, logistics) with 50% discount on JKK and JKM premiums (Rp36 billion budget)
- Housing support: BPJS Ketenagakerjaan lowers mortgage interest rates from BI rate +5% to BI rate +3%, targeting 1,050 housing units (Rp150 billion budget)
- Cash-for-work programs in transportation and public works sectors for 609,465 workers (Rp5.3 trillion combined budget)
- Regulatory reform: Implementation of PP No. 28/2025 and integration of RDTR digital maps into OSS system
- Urban innovation pilot: Upgrading settlements and creating gig economy platforms starting in Jakarta, with expansion to 8 provinces
- The package is designed to run through 2025, with select programs extended into 2026.
Strategic Insights:
The 2025 Economic Package signals a strategic recalibration of Indonesia’s development priorities, placing human capital, social resilience, and urban modernization at the center of its fiscal agenda. By combining direct support for workers with structural reforms and digital infrastructure, the government aims to stimulate demand, reduce inequality, and future-proof the economy.
The internship and wage subsidy programs address immediate labor market challenges, particularly youth unemployment and informal sector vulnerability. These initiatives not only inject liquidity into households but also strengthen workforce readiness and industrial linkages. The tax relief for tourism workers reflects a targeted recovery strategy for sectors hit hardest by global disruptions.
Housing support and urban pilot projects represent a forward-looking approach to livability and productivity. Lower mortgage rates and regulatory easing could unlock new demand in the housing market, while gig economy platforms and working spaces foster entrepreneurship and digital inclusion. The integration of spatial planning into OSS systems enhances transparency and accelerates investment flows.