Indonesian Political, Business & Finance News

Social Aid Digitalisation Pilot in 42 Regions Awaits Prabowo's Directive

| Source: CNBC Translated from Indonesian | Social Policy
Social Aid Digitalisation Pilot in 42 Regions Awaits Prabowo's Directive
Image: CNBC

The Chairman of the National Economic Council (DEN), Luhut Binsar Panjaitan, has announced plans to expand the pilot project for the digitalisation of social protection (perlinsos), including social assistance (bansos). A total of 42 regencies and cities are set to become pilot areas to test governance, infrastructure, and regulations before a wider implementation. “We have agreed, there are 42 regencies/cities that want to become pilots, including one regency in Banyuwangi that is already running,” Luhut said during a press conference on Wednesday (17/6/2026). Luhut added that a schedule has been proposed for President Prabowo Subianto to observe the digitalisation pilot project firsthand. “We have scheduled and agreed that on 6, 7, 8, and 9 July, President Prabowo can directly see this piloting in Surabaya, Banyuwangi, or Bali,” he continued. Luhut expressed hope that the local governments of the 42 regencies/cities can complete their registration by the end of July 2026. Since 4 June 2026, a limited trial has been underway in Surabaya and across Bali, covering 9 sub-districts and 14 wards/villages. As of 16 June 2026, more than 6,100 families have registered through the portal, assisted by over 700 support agents comprising civil servants (ASN), Family Hope Programme (PKH) and District Social Welfare Workers (TKSK), community leaders, PKK members, and Dasawisma groups. Luhut stated that the implementation of this digitalisation is pending President Prabowo’s decision, but he hopes it can be carried out simultaneously by October or November 2026. “The hope is that by October or November 2026, President Prabowo can launch it nationally across 541 regencies,” he explained. In the long term, Luhut is confident that improving the targeting accuracy of social assistance through digitalisation is projected to unlock potential spending efficiencies of around Rp 170 trillion to Rp 260 trillion, equivalent to US$10 billion to US$15 billion. This figure is a strategic estimate, not yet realised savings, and depends on data quality and the success of the expansion. Any changes to the data must have a clear audit trail.

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