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Sri Mulyani Prepares Social Budget To Maintain Purchasing Power Of Vulnerable Communitie

The government has reaffirmed its commitment to maintaining people's purchasing power, especially vulnerable groups, by strengthening various social protection programs in the 2026 State Budget Draft (RAPBN). 

This step was taken to ensure that household consumption, as the main driver of the national economy, remains stable amidst global challenges. 

Finance Minister Sri Mulyani Indrawati said that programs such as the Family Hope Program (PKH), basic food cards, wage subsidy assistance, and other social assistance will continue and be expanded. 

According to her, the sustainability of this program is important to support public spending and ensure inclusive economic growth. 

"Social protection programs, such as PKH, basic food cards, wage subsidy assistance and other programs will be implemented to maintain people's purchasing power, especially vulnerable groups," said Sri Mulyani at the 21st Plenary Meeting of the Indonesian House of Representatives, Tuesday (1/7/2025). 

She explained that household consumption makes a significant contribution to Gross Domestic Product (GDP), which is around 55%. 

Therefore, maintaining purchasing power is not only an economic priority, but also part of the strategy for equitable development and poverty alleviation. 

In addition to strengthening the social safety net, the government will also implement a number of other strategic programs to boost income and expand employment opportunities. 

Some of these include the free nutritious meal program (MBG), the development of the Red and White Village cooperative, and the distribution of People's Business Credit (KUR) to millions of debtors. 

With this approach, the government hopes that public consumption will continue to grow above 5% in 2026, while creating a multiplier effect on the trade, production, and home industry sectors in various regions. 

In the 2026 Draft State Budget, fiscal policy will continue to be directed to be more responsive and adaptive to global dynamics. Sri Mulyani emphasized the importance of cooperation between the central government, regions, and business actors in ensuring that social interventions can have a sustainable impact on people's welfare. 

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Tag: Gross Domestic Product RAPBN Sri Mulyani Indrawati