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Gov't rolls out 2025 wage subsidy to support up to 17 million workers

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Jakarta Globe - June 24, 2025

Mita Amalia Hapsari, Jakarta – The government has started disbursing its 2025 Wage Subsidy Assistance (BSU) program, providing Rp 600,000 ($37) in total to eligible workers. The subsidy, aimed at supporting low-income workers and stimulating the economy, is paid in a lump sum covering two months at Rp 300,000 per month.

As of Tuesday, a total of 2,450,068 workers out of the 3,697,836 listed for Phase I have received the funds directly in their bank accounts, Manpower Minister Yassierli announced at a press briefing in Jakarta. The remaining 1.25 million recipients are expected to receive the payment soon, he said.

"The funds have already been distributed to over 2.4 million workers. The rest are still in the process of disbursement," Yassierli said on Tuesday.

For Phase II, BPJS Ketenagakerjaan, Indonesia's social security agency for workers, has submitted data on 4,535,422 additional candidates. That list is currently undergoing verification and validation to ensure the subsidy reaches the right recipients.

The BSU program is one of five economic stimulus measures introduced under President Prabowo Subianto's administration and aims to reach up to 17 million workers across the country.

"This is our effort to maintain workers' purchasing power and support their daily needs, while at the same time helping drive national economic growth," Yassierli said.

To qualify for the subsidy, recipients must be Indonesian citizens with a valid national ID number (NIK), active participants in the national workers' social security program as of April 2025, and earning no more than Rp 3.5 million per month or below the local minimum wage in areas without officially set wage levels. Additionally, recipients must not be civil servants, military personnel, or police officers, and must not be receiving assistance under the government's Family Hope Program (PKH).

Disbursement is being carried out through state-owned banks BNI, BRI, BTN, and Mandiri, with Bank Syariah Indonesia (BSI) handling payments in the Aceh province. Workers without accounts in these banks will receive the funds through state postal service PT Pos Indonesia.

The BSU program was first introduced during the COVID-19 pandemic and has since evolved into a core component of Indonesia's social safety net, aimed at stabilizing consumption and labor market resilience in times of economic uncertainty.

Source: https://jakartaglobe.id/news/govt-rolls-out-2025-wage-subsidy-to-support-up-to-17-million-worker

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