Jakarta – Indonesian President Prabowo Subianto has presented eight government policies to boost Indonesia’s economic growth in the first quarter of 2025, ranging from Free Nutritious Meals to THR and social assistance.

Prabowo made the statement during his press conference on the obligation to keep foreign exchange export proceeds (DHE) of natural resources domestically at the Merdeka Palace, Central Jakarta, Monday (17/2) afternoon.

‘The government will continue to implement strategic policies to boost our economic growth,’ Mr Prabowo said.

Prabowo then explained eight policies to boost economic growth in the first quarter of this year.

The first is the policy outcome of the UMP increase in 2024. Second, optimising the distribution of social assistance (PKH, food cards, PIP, KIP, BLT-DD) in February and March 2025. Third, the disbursement of THR for ASN and private workers in March 2025.

Fourth, a number of stimuli during Ramadan and Lebaran such as discounted airfares, discounted toll rates, discount shopping programmes (Harbolnas 2025, EPIC Sales 2025, and BINA Diskon 2025, and the Lebaran Mudik Tourism programme conducted by the Ministry of Tourism and related SOEs, as well as food price stabilisation.

Fifth, economic stimulus packages such as electricity tariff discounts, VAT DTP for Property and Automotive Purchases (EV), PPnBM DTP for Automotive (Electronic Vehicle and Hybrid), Subsidy/Tax DTP for Electric Motor, and Income Tax DTP for Labour Intensive Sector.

Sixth, optimisation of the Free Nutritious Meal programme. Seventh, optimisation of KUR distribution. Eighth, optimally realised rice harvest.

‘There have been reports that our rice production has increased significantly,’ Prabowo said.

Prabowo also explained policies that encourage competitiveness for economic transformation.

‘The first, of course, is the Free Nutritious Meal programme which is expected to increase growth in all regions of our country because money is rotating in villages, in sub-districts, in districts,’ Prabowo explained.

Second, the ongoing food and energy security programme. Third, optimising the management of state-owned enterprises through consolidation into a national investment fund, Danantara, which will be launched on 24 February 2025.

‘Danantara is the consolidation of all our economic power in the management of state-owned enterprises, which will be managed and named Danantara, Daya Anagata Nusantara. Daya means energy-strength, anagata [means] future, Nusantara [is] our homeland,’ Prabowo explained.

‘Danantara is the economic power of investment funds which is the energy of Indonesia’s future power. State wealth is managed, saved for our children and grandchildren,’ he continued.

Fourth, the Housing Financing Liquidity Facility (FLPP) policy, which is a subsidised mortgage programme from the government to implement the 3 million low-cost housing programme and control inflation.

Fifth, the development of industrial estates and SEZs. Sixth, investment credit for labour-intensive industries.

Seventh, revision of PP No. 5 of 2021 for ease of doing business. Eighth, the sustainability of Tax Holiday and Tax Allowance to maintain the investment climate.

Ninth, a policy on foreign exchange export proceeds from the natural resources sector which is required to be deposited in domestic banks 100% for 12 months.

10th, the establishment of a gold bank where Indonesia has not had a bank for the gold ecosystem in the country.

‘There is none in Indonesia. So a lot of our gold is mined and flows abroad. We want to now have a special bank for gold in Indonesia. God willing, we will inaugurate it on 26 February. I think this is the first time in our republic,’ said Prabowo.

Eleventh, the elimination of bad debt charge books for MSMEs. 12th, international policies, namely Indonesia joining BRICS, completion of Indonesia-Canada CEPA, Indonesia’s accession to the OECD, and completion of Indonesia-EU CEPA cooperation.

‘The point is, a kind of free trade area, lowering tariffs for each other’s goods. Then, we also continue our registration to the OECD. Lastly, we also want to finalise our Indonesia-EU CEPA cooperation as soon as possible,’ Prabowo concluded.

Also accompanying Prabowo in today’s press conference were Coordinating Minister for Economic Affairs Airlangga Hartato, Minister of Finance Sri Mulyani, Minister of Energy and Mineral Resources Bahlil Lahadalia, Minister of State Secretariat Prasetyo Hadi, Chairman of the National Economic Council Luhut Binsar Pandjaitan, Minister of State-Owned Enterprises Erick Thohir, Minister of Investment and Downstream Roesan P Roeslani, and Cabinet Secretary Teddy Indra Wijaya. (RR)