Jakarta, March 7, 2025 – The Europe Today: President Prabowo Subianto has set an ambitious target of achieving 8% economic growth by 2029, despite prevailing global economic uncertainties. The government is gradually accelerating economic expansion, starting with a 5.2% growth target in the 2025 state budget.
During a ministerial coordination meeting on February 27, Coordinating Minister for Economic Affairs Airlangga Hartarto outlined strategic policies to drive economic growth. These include social assistance programs, special economic stimuli during Ramadan and Eid al-Fitr, and tax incentives to boost domestic consumption and industrial activity.
The government has allocated Rp150 trillion for the first phase of the Family Hope Program (PKH) in 2025 to enhance the purchasing power of lower-income groups. Additionally, an extra Rp16.6 trillion has been earmarked for the State Logistics Agency (Bulog) to stabilize rice prices and secure national food stocks.
To further stimulate economic activity, the government has introduced multiple initiatives, including airfare and toll road discounts, shopping promotions, and affordable food market operations. The Eid allowance for civil servants and private employees is expected to significantly boost consumer spending.
Additional economic stimulus measures include electricity discounts, VAT exemptions on property and electric vehicles, and tax relief for labor-intensive industries. The government also aims to enhance small business competitiveness through expanded low-interest People’s Business Credit (KUR), with Rp28.73 trillion already disbursed by February 21.
With these policies, the government remains committed to achieving sustainable economic growth, strengthening domestic industries, and ensuring macroeconomic stability.
