JAKARTA, March 22 — Indonesia is optimistic about achieving its 5.5 per cent economic growth target in the first quarter, supported by government programmes implemented during Ramadan and Aidilfitri.

The flexible work arrangement policy, set to be introduced after the festive period, is expected to further boost economic activity.

Coordinating Minister for Economic Affairs Airlangga Hartarto said the combination of festive-period stimulus and upcoming flexible work or work-from-home (WFH) policy is expected to boost domestic demand and strengthen resilience against global uncertainties.

“We fast for 30 days, and of course, the meaning of this victory is also related to the economy. The government has created many programmes, including discounts, encouraging mobility through work from anywhere, as well as food and social assistance,” he said, according to ANTARA News Agency on Sunday.

During the festive period, train and sea transport tickets were discounted by up to 30 per cent, ferry crossing fees were waived, and airfares reduced by about 17 to 18 per cent, with total funding estimated at more than Rp900 billion sourced from the state budget (APBN) and non-APBN support.

The government also distributed food assistance packages comprising basic necessities such as rice and cooking oil to more than 35 million beneficiary families over a two-month period to help sustain purchasing power.

On Saturday, Airlangga said the WFH would be implemented one day per week to balance flexibility with productivity, while the arrangement is expected to support spending over a longer horizon by enabling more flexible travel patterns, including extended weekend trips and increased movement to regional areas.

Separately, Finance Minister Purbaya Yudhi Sadewa on Saturday was reported to have said that preliminary estimates indicate the WFH arrangement could reduce fuel consumption by around 20 per cent.

He said limiting the policy to one day weekly helps preserve productivity, while potentially creating extended weekend patterns that could encourage domestic travel and support tourism-related spending. — Bernama