Luhut: Trial of Cash-Based Social Assistance Transfers to Begin in Q1-Q2 2027
The Chairman of the National Economic Council (DEN), Luhut Binsar Pandjaitan, stated that the government plans to conduct a trial for the distribution of social assistance (bansos) in the form of direct cash transfers during the first and second quarters of 2027.
Luhut 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. At the beginning of next year, in the first or second quarter, we will conduct the trial,” Luhut said when met in Jakarta on Saturday.
He explained that the distribution mechanism for social assistance will eventually 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, the social assistance will be provided as cash. We might use coupons to ensure proper usage. It must not be used for online gambling or alcohol, but perhaps for eggs, chicken, and so on,” he said.
“It will depend on the President; if we calculate based on potential savings, it could reach Rp1,200 trillion,” he added.
Luhut stated 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 mentioned that the verification of recipients will also employ facial recognition technology. Recipients who meet the criteria will receive the cash transfer, while citizens who believe they are eligible but have not received aid can file an appeal.
“The goal is to be targeted and to 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 of the system is being carried out gradually so that the government can evaluate its implementation before a wider rollout.