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

The real sector will become increasingly cautious about expanding its business. Spokesperson for the Chairman of Indonesia’s National Economic Council (DEN), Jodi Mahardi, has provided clarification regarding a statement by DEN Chairman Luhut Binsar Pandjaitan concerning a social assistance (bansos) figure of IDR 5.4 million per person. Jodi stressed that this figure is not a new cash assistance programme to be distributed equally to all citizens. According to Jodi, the nominal sum of IDR 5.4 million serves as an illustration of the maximum accumulated estimate from various existing social protection programmes (perlinsos). He emphasised that the real benefits received by the public will vary depending on the conditions and eligibility level of each household. Previously, DEN Chairman Luhut Binsar Pandjaitan revealed that the government is refining the social assistance scheme through the integration of the Government Technology (GovTech) system. Currently, around 80 per cent of the system has been integrated across ministries and agencies. This measure aims to transform the subsidy scheme from being commodity-based to one based on direct beneficiaries. Utilising a digital single ID, the government can monitor recipient profiles more accurately and ensure more transparent and targeted distribution. Jodi Mahardi added that this policy transformation is being carried out in stages. Currently, trial implementations of the digitalisation of social assistance distribution are underway in several regions. The results of these trials will be comprehensively evaluated before they are applied on a national scale. The government guarantees that this governance reform will not reduce the 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 in society receive their entitlements effectively.