Government Prepares AI-Powered Digital Single ID for Social Assistance and MSMEs

Chairman of the National Economic Council (DEN) Luhut Binsar Pandjaitan has stated that the government is preparing a digital single ID system based on artificial intelligence (AI) to strengthen the distribution of social assistance and data-based governance. Luhut said in a press statement at Merdeka Palace, Jakarta, Tuesday, that the system is targeted to begin implementation by the end of this year in order to improve the targeting accuracy of social assistance while reducing potential budget leakages. “The digital single ID may start running by the end of this year so that all social assistance or direct cash transfers will be more accurately targeted and can save a significant amount of the budget,” said Luhut. He explained that the future administration will increasingly rely on AI-based digitalisation to integrate public data and various government programmes. Currently, he said, about 80 per cent of the Government Technology (GovTech) system has been integrated across ministries and agencies as the basis for implementing the single digital identity system. Through this integration, the government can identify and monitor the profiles of aid recipients more accurately, including changing the subsidy scheme from being goods-based to beneficiary-based. “Subsidies will no longer be for goods. Subsidies will go directly to recipients. On average, social assistance takes the form of a cash transfer of around Rp 5.4 million per person,” Luhut stated. In addition to social assistance, the digital single ID system will also be used to support the development of micro, small, and medium enterprises (MSMEs) through business actor data mapping. According to Luhut, AI technology can help the government provide an assessment or score for MSME players based on integrated data, so that financing and mentoring policies can be more accurately targeted.