DEN Spokesperson Clarifies Luhut's Idea on IDR 5.4 Million Social Assistance

The spokesperson for the Chairman of the National Economic Council (DEN) of Indonesia, Jodi Mahardi, has provided a clarification regarding statements made by DEN Chairman Luhut Binsary Pandjaitan concerning the social assistance (bansos) figure of Rp5.4 million per person. Jodi emphasised that this figure does not represent a new cash assistance programme to be distributed equally to all citizens.

According to Jodi, the Rp5.4 million amount is an illustrative estimate of the maximum accumulation from various existing social protection programmes. He stressed that the actual benefits received by the public will vary depending on the conditions and eligibility levels of each household.

Previously, DEN Chairman Luhut Binsar Pandjaitan revealed that the government is refining the social assistance scheme through the integration of Government Technology (GovTech). Currently, approximately 80 per cent of the system has been integrated across various ministries and agencies.

This step aims to transform the subsidy scheme from being goods-based to being based on direct beneficiaries. Through a digital single ID system, the government can monitor recipient profiles more accurately and ensure that distribution is more transparent and precisely targeted.

Jodi Mahardi added that this policy transformation is being implemented gradually. Currently, trials for the digitalisation of social assistance distribution are underway in several regions. The results of these trials will be comprehensively evaluated before being implemented on a national scale.

The government guarantees that this governance reform will not reduce existing social protection programmes. On the contrary, the use of digital technology and AI is expected to support the development of MSMEs and ensure that the most vulnerable groups of society receive their entitlements effectively.