Luhut: Social Assistance Will Be Distributed in Cash, Possibly Using Vouchers
The Chairman of the National Economic Council (DEN), Luhut Binsar Pandjaitan, stated that the government plans to trial the distribution of social assistance (bansos) in the form of direct cash transfers during the first and second quarters of 2027. He noted that the government is currently processing recipient data to ensure that the distribution of aid is more precisely targeted.
“We plan for all of that to be completed by the end of this year. In the first half of next year, we will conduct a trial,” Luhut said when met in Jakarta on Saturday (5/9/2029).
He explained that the distribution mechanism for social assistance will be directed towards cash transfers. However, the government will still regulate the mechanism to ensure that the aid is used to meet specified needs.
“Ultimately, social assistance will be provided in cash, perhaps using vouchers, so that its usage is correct. It must not be used for online gambling or alcohol, but perhaps for eggs, chicken, and so on,” he said.
Regarding the amount of assistance, Luhut stated that they have calculated the aid to reach approximately Rp 5.4 million per family. Nevertheless, he added that the amount remains subject to the decision of President Prabante Subianto.
“It will depend on the President; if savings are considered, we have calculated it could reach Rp 1,200 trillion,” he said.
Luhut mentioned that the government is also developing a system to improve the accuracy of social assistance recipients by utilising digital technology and integrating data with the Directorate General of Population and Civil Registration (Dukcapil) of the Ministry of Home Affairs.
He noted that the verification of recipients will also use facial recognition. Recipients who have been declared to meet the criteria will receive cash transfers, while citizens who believe they are eligible but have not received aid can file an appeal.
“So it will be targeted and will create fairness. Currently, many who are ineligible are receiving it, while many who are eligible are not receiving it,” said Luhut.
He added that the development process of the system is being carried out gradually so that the government can evaluate its implementation before it is applied more widely.