Indonesian Government Implements Comprehensive Economic Stimulus Measures

Increased Government Spending

The Indonesian government has significantly increased its central government expenditure, reaching Rp 1,879.6 trillion by October 31, 2025. This represents 73.5% of the total projected budget of Rp 2,663.4 trillion for the year ¹

. The increased spending is Rp 45.1 trillion higher than the same period last year, demonstrating the government's commitment to stimulating economic growth.

Social Assistance Programs

The government has made substantial progress in disbursing social assistance funds, with Rp 147.2 trillion distributed by October 2025. This represents 98.6% of the annual target and shows an 11.1% increase compared to the same period in 2024 ²

. The social assistance programs include:

• PBI JKN (National Health Insurance Contribution Assistance): Rp 38.6 trillion for 96.8 million beneficiaries
• Kartu Sembako (Food Assistance): Rp 54.1 trillion for 18.3 million families
• PKH (Family Hope Program): Rp 27.5 trillion for 10 million families
• KIP Kuliah (Smart Indonesia Card for Higher Education): Rp 15 trillion for 1.1 million students
• PIP (Smart Indonesia Program): Rp 8.5 trillion for 11.5 million students ⁴
  Source 4

  https://finance.detik.com/berita-ekonomi-bisnis/d-8220927/belanja-bansos-capai-rp-147-triliun-ini-rinciannya

Energy Subsidies and Compensation

The government has also allocated significant funds for energy subsidies and compensation. By October 2025, Rp 315 trillion has been disbursed, representing 66.3% of the projected amount. This includes Rp 194.9 trillion in subsidies and Rp 120 trillion in compensation for fuel and electricity ⁵

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Transportation Discount Program

To further stimulate economic activity during the holiday season, the government has introduced a transportation discount program starting November 21, 2025. This initiative aims to enhance mobility and support economic growth during the end-of-year period. Coordinating Minister for Economic Affairs Airlangga Hartarto emphasized that this program follows direct instructions from President Prabowo Subianto to make transportation more affordable during the holiday period ³

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Economic Impact

These comprehensive measures demonstrate the government's proactive approach to maintaining economic momentum. The increased government spending and targeted social assistance programs are expected to have a positive impact on consumption and overall economic growth. As noted by Deputy Finance Minister Suahasil Nazara, the government's expenditure has already contributed to a 5% growth effect in the third quarter GDP ¹

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