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Apindo: Economic stimulus hoped to bolster productivity and purchasing power

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Tempo - September 18, 2025

Anastasya Lavenia Yudi, Jakarta – Chairperson of the Indonesian Employers Association (Apindo), Shinta Kamdani, hopes the government's economic stimulus could address the dual needs of maintaining people's purchasing power while also strengthening production capacity. She cautioned about several prerequisites to ensure that the stimulus will deliver real impacts.

"Stimulus should not be solely used for consumption," Shinta said in a written statement on Wednesday, September 17, 2025. According to her, long-term growth can be achieved through capital accumulation and increased productivity.

She also mentioned several programs, such as deregulation, modernization of fishing boats, revitalization of fishponds, and urban MSMEs platform, as examples of capital formation that can enhance production capacity.

Furthermore, Apindo argues that the government's stimulus should also trigger private investment, not just government spending. For example, interest subsidies for People's Business Credit or fiscal incentives could serve as a catalyst for entrepreneurs to expand their business ventures.

Shinta stated that the business world indeed requires incentives for acceleration, but equally important is structural improvements. She explained that to expedite investment, the government needs to reduce high-cost structures and simplify regulations.

"Today's business world faces widespread and comprehensive high costs. Our business costs are much higher compared to neighboring countries, like logistics costs, energy costs, and compliance costs from the bureaucracy," Shinta said.

The government has launched an 8+4+5 economic package consisting of eight acceleration programs for development in 2025, four follow-up programs in 2026, and five flagship programs for employment absorption.

The eight acceleration programs consist of internships for fresh graduates, expansion of 21% income tax borne by the government, food assistance, accident insurance (JKK) and death insurance (JKM) for non-salary workers, additional benefits from the BPJS Employment Housing, cash for work, acceleration of deregulation pursuant to Government Regulation Number 28 of 2025 concerning Risk-Based Business Licensing, and urban programs aimed at improving housing quality and providing space for the gig economy.

The government's five programs for employment absorption are the Red and White Village Cooperatives, the Red and White Fishers Villages, fishpond revitalization in the North Coast of Java, modernization of fishing boats, and rural plantations.

When announcing the economic stimulus package, Finance Minister Purbaya Yudhi Sadewa also mentioned that the government has formed a team to accelerate economic development programs. In the future, this team will receive complaints from business actors who still encounter obstacles in running their businesses.

"We will receive their reports. We will convene this team once a week," Purbaya said at the Presidential Palace, Jakarta, on Monday, September 15, 2025, as quoted from the Presidential Secretariat's YouTube broadcast.

Source: https://en.tempo.co/read/2049886/apindo-economic-stimulus-hoped-to-bolster-productivity-and-purchasing-powe

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