Luhut Claims Digital Social Protection Launch Could Save State Rp1,200 Trillion

The Chairman of the National Economic Council (DEN), Luhut Binsar Pandjaitan, stated that the digitalisation of social protection could save state funds by Rp1,200 trillion. This digital social protection initiative is scheduled to be launched in the third week of October 2026.

Luhut noted that the programme is also intended to close various potential leakages and encourage the creation of a more efficient government ecosystem.

“Yes, it will impact the fiscal situation. Based on our calculations, the savings from digitalisation could reach Rp1,200 trillion, and that figure could even decrease further. The President wants to ensure that the issue of justice truly reaches the grassroots,” Luhut said on Thursday (10/9/2026).

With this digital social protection, all social assistance (bansos) will be integrated, and implementation will be carried out based on valid data. According to Luhut, the assistance will be transferred online or via a cashless scheme.

The government, according to Luhut, is still studying the disbursement mechanism. However, he suggested that social assistance could be distributed using a coupon system. This would ensure that recipients can only use the funds to purchase specific items such as rice, fuel, or to pay for electricity.

“We are still considering whether to provide coupons so that it cannot be used for online gambling,” he added.

Luhut further stated that this digital social protection will also be used to eliminate inclusion and exclusion errors regarding the registration of social assistance recipients.

“Because this will likely resolve many inclusion or exclusion errors. This ensures that those who are entitled receive it, and those who are not entitled do not,” Luhut concluded.