Indonesian Political, Business & Finance News

Government Prepares Single Digital ID for Social Assistance Distribution

| Source: TEMPO_ID Translated from Indonesian | Social Policy

The government is preparing a single digital identity system based on artificial intelligence to enhance the efficiency and accuracy of social assistance distribution. This was conveyed by National Economic Council Chair Luhut Binsar Pandjaitan following a meeting with President Prabowo Subianto at the Merdeka Palace on Tuesday, 9 June 2026. Luhut stated that the implementation of this system is targeted to begin by the end of 2026. “By the end of this year, there will be a digital single ID so that all social assistance or direct cash transfers will be targeted. So, it will be appropriate and it will save a considerable amount of money,” said Luhut. The President’s Special Advisor for Digitalisation and Government Technology explained that the single digital identity system is supported by the utilisation of artificial intelligence that integrates all government data. With the digital single ID system, the government claims it is able to identify and monitor the profile of aid recipients more accurately. “Subsidies will no longer be for goods. Subsidies will go directly to the recipients. The average social assistance is a cash transfer of around Rp 5.4 million per person,” said Luhut. Not only for social assistance, Luhut said the single digital identity system will also be used to support the development of micro, small, and medium enterprises through mapping business actors’ data. Currently, Luhut said, about 80 percent of the government technology system between ministries and agencies has been integrated. Luhut said GovTech in President Prabowo’s administration is one of the most important parts. “Why? Because all data will later be collected properly and no one can escape from it,” he said. Luhut explained that GovTech development is carried out efficiently by utilising existing digital ecosystems, such as PeduliLindungi, e-Katalog, and Simbara. This system, said Luhut, was developed by the nation’s young talents. Meanwhile, as part of the national implementation, the government is currently running pilot projects in 42 provinces, regencies, and cities. “It has already been running in Banyuwangi and has been very successful. We are learning from this model. Later, if these 42 are successful, in October this year it will be rolled out nationally, all 514 regencies will be connected,” said Luhut.

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