Media

Yogyakarta – The Indonesian Employers Association (APINDO) of the Yogyakarta Special Region (DIY) is urging the government to reintroduce the Wage Subsidy Assistance (BSU) program to help boost workers’ purchasing power and support economic recovery.

APINDO DIY Deputy Chair for Labor Affairs, Timotius Apriyanto, stated that the BSU program is a vital policy tool to strengthen domestic consumption.

“Yes, we need BSU again. If we’re talking about increasing people’s purchasing power, the government should provide another round of BSU. That’s what we’ve always pushed for — to ensure that workers in various sectors also benefit,” he said on Sunday (November 2, 2025).

The government previously distributed BSU funds of Rp600,000 in June and July 2025, targeting employees earning less than Rp3.5 million per month.

However, according to Timotius, the amount was too small, especially since it covered two months. “Ideally, the BSU should range from Rp600,000 to Rp800,000 per month, not just for one or two months but for at least six months. The eligibility should also be expanded to include those earning below Rp5 million,” he suggested.

He added that the previous BSU distribution had limited impact on economic growth.

“The economic effect of such a policy usually appears after two quarters around the third or fourth quarter. But so far, we haven’t really seen any significant results from the June–July 2025 BSU,” Timotius explained.

Furthermore, he proposed that the government reallocate funds from flagship programs such as Free Nutritious Meals (MBG) and Village Cooperative Merah Putih (KDMP) to support another round of wage subsidies.

“Minister of Finance Mr. Purbaya mentioned that around Rp40 trillion was allocated this year for the MBG program. It would be better if that amount were redirected to wage subsidies. We can afford it the issue is that we’re not spending it in the right way. The spending needs to be more targeted and efficient,” he concluded.

Source: jogja.tribunnews.com