Government Confirms Rp 503 Trillion in Social Protection Programs Will Continue Amid Global Uncertainty

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JAKARTA, Investortrust.id – The Indonesian government has reaffirmed its commitment to roll out Rp 503 trillion ($30.7 billion) in social protection programs throughout 2025, despite geopolitical uncertainties impacting the global economy.

Director General of Fiscal and Economic Strategy at the Ministry of Finance, Febrio Nathan Kacaribu, stated the funding had been secured within the 2025 state budget (APBN) and would be used to accelerate key welfare initiatives under President-elect Prabowo Subianto’s administration.

“If we’re talking about social protection, the amount is Rp 503 trillion and it has already been allocated in the 2025 budget. We will execute it by accelerating flagship programs from Mr. Prabowo in the next semester,” Febrio said during the Double Check economic discussion forum in Jakarta on Saturday, June 28, 2025.

The programs include Free Nutritious Meals (MBG), the People’s School (SR), and other social welfare initiatives aimed at improving public wellbeing and reducing poverty.

Temporary vs. Regular Aid

Febrio clarified that some additional aid packages, such as wage subsidies (Bantuan Subsidi Upah or BSU) and expanded social assistance (penebalan bansos), are one-off programs available only in June and July. However, Indonesia’s core social protection initiatives, including the Family Hope Program (Program Keluarga Harapan or PKH), will continue on schedule.

“I don’t remember the exact realization figures,” he admitted, “but these allocations are disbursed quarterly. For example, PKH and similar aid are scheduled regularly. The Rp 10 trillion in extra assistance refers to the temporary expansion of social support, separate from the regular disbursement of the Rp 503 trillion.”

Budget and Fiscal Outlook

Indonesia’s 2025 state budget stands at Rp 3,621 trillion ($220.7 billion). According to Febrio, the government’s fiscal position remains stable, with the budget deficit still low as of May 2025. A mid-year fiscal report will be submitted to the House of Representatives (DPR) on July 8, providing updates on first-half performance and full-year projections.

“At that time, we’ll report on how far we’ve progressed up to June 30 and present our outlook for the rest of the year,” he added.