Luhut Says Digitalisation of Social Assistance System Could Save State Budget up to IDR 1,500 Trillion

The government has announced it is designing a digitalisation system for social assistance (bansos) utilising artificial intelligence (AI) technology. Luhut Binsar Pandjaitan, Chair of the Government’s Digital Transformation Committee, stated that the software for this system is being developed domestically. “So we are not buying or importing software, which keeps costs high,” Luhut said after a coordination meeting at the Ministry of Home Affairs office in Central Jakarta on Tuesday. He explained that the system integrates 27,000 applications across various ministries and agencies. Luhut reported to the President that this digitalisation of the social assistance system could save the State Budget (APBN) by more than IDR 1,500 trillion. “We have reported to the President, we can save more than IDR 1,500 trillion. The calculations are there, and this is a truly realistic figure,” he added. Luhut further stated that the state budget savings would positively impact the tax ratio, potentially increasing it to 13 per cent. “So according to the World Bank, not just us, our current tax ratio can gradually rise to 11, 12, or 13 per cent, like other ASEAN countries, or perhaps even better,” he said.