Susiwijono Moegiarso, secretary of the Coordinating Ministry for Economic Affairs, said stimulus packages rolled out in the first and second quarters have proved effective in supporting growth.
"Going forward, several government programs will focus on maintaining domestic and household consumption," he said at the launch of the 2025 Indonesia Shopping Festival in Jakarta on Thursday.
He noted that household consumption accounts for more than 50 percent of economic growth, making the preservation of purchasing power a key priority.
In the first half of the year, the government provided stimulus measures such as social assistance, wage subsidies, 13th-month pay, toll discounts, and transportation fare reductions.
Economic growth reached 5.12 percent in the second quarter, with the consumption component boosted largely by increased mobility —believed to be influenced in part by the stimulus packages.
According to Moegiarso, these measures have had a multiplier effect in strengthening purchasing power.
"The government wants to encourage consumption by maintaining purchasing power. That's the secret behind sustaining growth and securing 5.12 percent in the last quarter," he said.
He added that the government supports events organized by associations and private players, such as the Indonesia Shopping Festival, to help drive consumption.
The festival, organized by the Indonesian Shopping Center Association (APPBI), runs from August 14–24 at shopping centers nationwide and is expected to generate transactions worth up to Rp23 trillion (around US$1.42 billion).
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Translator: Maria Cicilia, Raka Adji
Editor: Anton Santoso
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