Indonesia Sets Eight Economic Priorities for the First Quarter of 2025

Author: Dian Kencana
February 18, 2025

Indonesian President Prabowo Subianto.

SEAToday.com, Jakarta - President Prabowo Subianto has introduced eight key policies aimed at driving economic growth in the first quarter of 2025.

“The government remains committed to implementing strategic policies to accelerate our economic growth,” President Prabowo stated at the Merdeka Palace in Jakarta on Monday (2/17/2025).

Here are the economic policies set for early 2025:

Evaluating the impact of the 2024 increase in the provincial minimum wage (UMP).
Enhancing the distribution of social assistance programs, including the Family Hope Program (PKH), Basic Food Card, Smart Indonesia Program (PIP), Smart Indonesia Card (KIP), and Village Fund Cash Assistance (BLT-DD) in February and March 2025.
Disbursing holiday allowance (THR) funds for civil servants (ASN) and private-sector workers in March 2025.
Introducing the 2025 Ramadan-Lebaran stimulus package, which includes:
- Discounted airfare
- Reduced toll fees
- Shopping discount programs such as Harbolnas 2025, EPIC Sales 2025, and BINA Diskon 2025
- Lebaran Homecoming Tourism Program (coordinated by the Ministry of Tourism and relevant state-owned enterprises)
- Food price stabilization efforts
Launching an Economic Stimulus Package featuring:
- Electricity tariff discounts
- VAT exemptions on property and electric vehicle (EV) purchases
- PPnBM tax incentives for EVs and hybrid vehicles
- Subsidies and tax reductions for electric motorcycles
- Income tax incentives for labor-intensive sectors
Expanding the Free Nutritious Meal program.
Strengthening the distribution of People's Business Credit (KUR).
Maximizing the efficiency of ongoing rice harvesting initiatives.