Luhut says new social assistance scheme won't cut existing social protection programmes
The Indonesian government’s refinement of the social assistance benefit scheme will not reduce existing social protection programmes, according to Luhut Binsar Pandjaitan, Chairman of the National Economic Council.
Jodi Mahardi, Spokesperson for the Chairman of the National Economic Council, explained that the government’s main focus currently is building a more integrated social protection system by utilising digital technology. This governance transformation is designed so that the distribution of various aid and subsidy programmes can be carried out more precisely, efficiently, transparently, and be easily accessible to eligible citizens.
“We also emphasise that this reform is not designed to reduce existing social protection programmes. On the contrary, the government wants to ensure that the benefits of social protection programmes can be distributed far more effectively and on target, particularly for the most vulnerable groups in society,” Jodi clarified.
He therefore straightened out that the previously circulating figure of Rp5.4 million is not a new cash assistance programme to be received equally by every citizen. According to Jodi, that figure is purely an illustrative estimate of the maximum accumulation from various existing social protection programmes, including social assistance.
“Because each household has different conditions and eligibility levels, the real benefits received will certainly not be the same,” he added.
Jodi stated that the policy transformation for social assistance distribution is being carried out in stages. Trials for the digitalisation of social assistance distribution have been running in several regions and will continue to be evaluated comprehensively before being implemented nationally.
“The government is fully committed to delivering social protection programmes that are increasingly responsive, integrated, and capable of providing optimal benefits for the people’s welfare,” he said.
Previously, Luhut stated that the government is preparing an artificial intelligence-based “digital single ID” system to strengthen social assistance distribution and data-based governance. Currently, he said, around 80 percent of the Government Technology system has been integrated across ministries and agencies as the basis for implementing the single digital identity system.
Through this integration, the government can identify and monitor the profiles of aid recipients more accurately, including changing the subsidy scheme from being commodity-based to beneficiary-based.
“Subsidies will no longer be for goods. Subsidies will go directly to recipients. The average social assistance is a cash transfer of about Rp5.4 million per person,” Luhut said. Besides social assistance, the digital single ID system will also be used to support the development of micro, small, and medium enterprises through data mapping of business actors.