Luhut: Data Integration to Reduce Mistargeted Social Assistance to Under 10 Per Cent

The Chairman of the National Economic Council (DEN), Luhut Binsar Pandjaitan, stated that integrating government data through Government Technology (GovTech) could lower the rate of mistargeted social assistance (bansos) from 77.6 per cent to less than 10 per cent.

“The pilot project we conducted in Banyuwangi as part of the government technology initiative has identified various problems within this administration that we are now rectifying. Currently, 77.6 per cent of all distributed social assistance is off-target. With these improvements, we now anticipate less than 10 per cent,” Luhut said during the IT Del Grand Reunion in Jakarta on Saturday.

Luhut noted that the integration of government data is ongoing, ensuring that data from various ministries and agencies can be interconnected and analysed using artificial intelligence (AI).

He mentioned that the development of GovTech has currently reached almost 80 per cent. He also targets President Prabowo Subianto to launch the system by October 2026.

Luhut stated that by the end of 2026, all government data will be ID-based, meaning Indonesia will possess a digital single ID, which is expected to have a significant impact on the nation.

According to Luhut, the comprehensive implementation of GovTech also has the potential to increase government efficiency by closing various loopholes and building a more transparent ecosystem.

“We calculate that with government technology, we will be able to save more than Rp1,200 trillion, close leakages here and there, and create an ecosystem where people are compelled to be transparent, compelled to be more efficient, and compelled not to engage in corruption,” he said.

Luhut assessed that this digital transformation of the government could serve as a key factor supporting Indonesia’s long-term economic growth.

He added that the government will continue to develop GovTech gradually and noted that the President has issued instructions to ensure the integration process continues.