Government Incentives Believed Not To Burden State Budget

Foto: dok Fahum UMSU

Government Incentives Believed Not To Burden State Budget

Wednesday, 04 Jun 2025

Economist from the University of Indonesia (UI) Fithra Faisal Hastiadi assessed that the government's move to launch six economic incentive packages will not burden the State Budget (APBN) much.

According to him, the influx of incentives given to the community is actually a more mature step by the government in reallocating the state budget to more productive items.

"This is in line with Presidential Instruction Number 1 of 2025 concerning efficiency. The transfer of the budget from non-productive to productive," said Fithra in a discussion at the Sumitro Institute, Depok, Sunday, June 1, 2025.

The first quarter of this year, he continued, is a period of budget reallocation related to government budget efficiency. "While the second quarter is a spending period and is expected to have a truly significant and targeted impact," Fithra hoped

It is known that the government plans to launch six incentive packages to boost people's purchasing power. This step is also a stimulus for household consumption during school holidays.

The six stimuli are public transportation discounts during school holidays, toll rate discounts for private vehicles during the holiday season, 50 percent discount on electricity rates for households with power below 1,300 volt ampere (VA).

Next, additional social assistance, namely basic necessities and food for 18.3 million recipients, wage subsidy assistance for workers with salaries below IDR 3.5 million and honorary teachers and finally a discount on Work Accident Insurance (JKK) contributions for labor-intensive companies.