Upside Down To Maintain Indonesia's Purchasing Power, Here's The Government's Action Plan

Throughout 2024, the national economy showed optimal resilience, with GDP growth reaching 5.03% (yoy). The government is determined to maintain this economic growth record in early 2025. 

Therefore, Eid is an important moment. Until now, many program plans will be rolled out by the government to support growth at the beginning of this year. 

"In order to encourage economic growth in the first quarter of 2025, the Government is encouraging increased demand and supply to support economic movement during the Eid holiday," said the Coordinating Minister for Economic Affairs when delivering a keynote speech at the Nusantara Economic Outlook (NEO) 2025 event, quoted Sunday (15/3/2025). 

Various programs prepared by the Government ahead of Eid al-Fitr start from tourism programs during the Eid al-Fitr period which are projected to have 122.1 million tourist trips, VAT DTP incentives increased by 6% for transportation tickets, 20% toll rate discounts for long-distance trips (Barrier Gate to Barrier Gate) on several toll roads, on D-7 to D-4 of Eid al-Fitr, and D+7 to D+8 of Eid al-Fitr, to the acceleration of the electric motor vehicle program for which the Government has agreed to provide assistance of IDR 7 million per motorbike unit. In addition, there is also a policy of providing Religious Holiday Allowances (THR) for workers/laborers and Religious Holiday Bonuses for drivers and couriers in application-based transportation services paid no later than 7 (seven) days before Eid al-Fitr, distribution of THR for Central and Regional ASN and retirees 2 weeks before Eid al-Fitr, as well as national shopping programs including Friday Mubarak on February 28 - March 28, 2025 with a transaction target of IDR 75-77 trillion, BINA Lebaran on March 14 - 30, 2025 with a transaction target of IDR 30 trillion, and the Ramadan online shopping campaign across e-commerce. 

In addition to preparing various policies to maintain the economy, the Government also continues to monitor the dynamics of the global economy which continues to change, one of which is related to new economic policies in the United States such as tariffs. Although a number of countries face a higher risk of recession, Indonesia remains in a good position. 

According to Bloomberg data in February 2025, Indonesia's recession probability is less than 5%, much lower than other countries such as Mexico (38%), Canada (35%), and the United States (25%). "However, with a solid national economic foundation, diversification of trading partners, and continuously strengthened downstreaming, Indonesia has a great opportunity to maintain its stability and competitiveness amidst this turmoil. Of course, commitment and synergy are needed from all parties to work together in continuing to build an inclusive, competitive, and sustainable economic fundamental," said Airlangga. 

Tag: Economic Growth GDP Nusantara Economic Outlook VAT DTP