Luhut: Digitalisation Systems Could Save Government Thousands of Trillions of Rupiah

Chairman of the National Economic Council (DEN) Luhut Binsar Panjaitan stated that government data digitalisation systems, such as Social Protection (Perlinsos) and the Mineral and Coal Information System (Simbara), could save the government up to thousands of trillions of rupiah. This is because the data and systems have been integrated and processes can be streamlined through the use of digital technology. “I think (the estimated savings could reach) thousands of trillions. Perhaps Rp1,500 trillion, maybe Rp2,000 (trillion),” Luhut said during a press conference in Jakarta on Wednesday. “As the President mentioned earlier, critical minerals are very controlled, we are trying with Simbara. This just needs to be continuously developed, and it will create efficiency,” he added. Furthermore, he assessed that a digital-based system with accurate and transparent data is expected to reduce the potential for misappropriation. “We are essentially building an ecosystem where people are unable to commit corruption, or have very little opportunity to do so,” he said. Luhut, who also serves as the President’s Special Advisor on Digitalisation and Government Technology, said the government is currently finalising the progress of digital systems needed by the public, including Digital Perlinsos. The national Digital Perlinsos is expected to be implemented gradually and comprehensively by the end of this year. He noted that pilot projects for the Digital Public Infrastructure (DPI) based system are already running in several regions across Indonesia. Luhut added that 42 regencies/cities have currently been recorded as pilot project areas, and residents within them are targeted to register for the system by next July. Additionally, he said this digitalisation system will later be expanded for data transparency across various programmes, including data on beneficiaries of the Free Nutritious Meals (MBG) programme. “Regarding MBG, I think we will see what the policy is later, and we will provide suggestions based on the available data. We will advise the President so that he can make decisions based on accurate data,” Luhut said.