<![CDATA[The year 2024 presents a crucial phase for Indonesia’s economy during the global post- pandemic recovery and ongoing geopolitical uncertainty. This study aims to examine the relationship between subsidy policy and inflation levels on the purchasing power of Indonesian households. An explanatory quantitative method is applied using secondary data sourced from institutions such as BPS, the Ministry of Finance, and the Ministry of Manpower. The results reveal that despite a reported inflation decrease to 1.57% in early 2024, this reduction was largely driven by food price interventions rather than an improvement in consumer purchasing behavior. Household purchasing power remains under strain due to the persistent gap between rising basic commodity prices and stagnant income levels. Meanwhile, the implementation of subsidies and social assistance has not been fully effective, facing challenges in targeting accuracy and distribution efficienc Policy reform is needed to shift subsidies from being merely protective to becoming instruments of empowerment. This includes expanding access to training, financing, and inclusive job opportunities for low-income groups. In addition, improving social welfare data systems, accelerating digital integration, and diversifying growth through industrial, export, and digital sectors are crucial for building a resilient and inclusive economy. The study recommends a coordinated approach combining short-term interventions with long- term structural reforms.]]>
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