Chicken soup for angry souls: Prabowo's billion-dollar stimulus soothes Indonesians after unrest

While plan may ease pressure on workers, it is not a long-term solution, say economists

- Arlina Arshad Indonesia Bureau Chief Wahyudi Soeriaatmadja Indonesia Correspondent

JAKARTA - When his small clothing and shirt-printing business in Subang, West Java, folded during the Covid-19 pandemic, Indonesian Asep Dadi turned to making masks - and nearly went bankrupt in the face of stiff competition.

For the past five years, the 50-year-old has scraped by with odd jobs, from welding and installing doors to selling household staples and brokering shoes to schools. He has also done backbreaking construction work, sometimes mixing cement and hauling buckets under the scorching sun.

Now, Mr Asep may get some relief if he is among 600,000 rural workers selected for a three-month “cash for work” programme running until December. It will provide daily wages for the temporary employment, mostly in infrastructure projects such as roads and bridges.

“This opens up opportunities for many of us,” the father of three told The Straits Times. “But I am no longer young, so even though I can still handle the heavy work, I might slow down a construction project. Still, this is exciting. I am hoping for the best outcome for me and my family.”

The programme is part of a 16.23 trillion rupiah (S$1.25 billion) economic stimulus unveiled on Sept 15, designed to support households, reduce business costs and expand employment till the end of 2025.

The relief effort comes after deadly protests in August, which highlighted public anger at a government seen as out of touch with ordinary Indonesians.

After a Cabinet reshuffle on Sept 8 that removed widely respected finance minister Sri Mulyani Indrawati, her successor, Dr Purbaya Yudhi Sadewa, vowed to take a more aggressive approach to boost growth. Calling the financial system “dry”, he stressed the need to revive jobs and stimulate both private and public sector activity.