Gov’t Disburses Cash Transfer Assistance to 90% of Indonesia’s Villages

Minister of Village, Disadvantaged Regions and Transmigration Abdul Halim Iskandar is in a meeting with volunteers of village squad to prevent spread of COVID-19. (Photo by: Ministry of Village, Disadvantaged Regions and Transmigration).

The Government has announced that Cash Transfer Assistance (BLT) which is sourced from the Village Funds has been distributed to 65,736 villages as of 16 June 2020.

In other words, 90 percent of all villages in Indonesia has received the assistance.

“For villages that have not received the assistance, I will explain the reasons,” Minister of Village, Disadvantaged Regions and Transmigration Abdul Halim Iskandar said in a press conference at the Presidential Office, Jakarta, Wednesday (17/6).

According to the Minister, the distribution in 291 regencies is 100 percent completed, while distribution in 81 regencies is ranging from 75 to 99 percent.

In the meantime, he added, distribution in 24 regencies is ranging from 50 to 74 percent, distribution in 27 regencies is ranging from 1 to 49 percent, and distribution in 11 regencies mostly in Papua is 0 percent.

“Regarding the 11 regencies, the results are probably because the assistance program has not started yet or it has started but there is no report given the geographical terrain. For that reason, we are asking for support from the Ministry of Home Affairs for further details,” he added.

The Minister also pointed out that among 6,881,778 beneficiaries of Cash Transfer Assistance to Villages, there are 272,491 households whom family member suffer from chronic disease or long-term illness, while 1,887,116 households are headed by women.

On that occasion, he said that villages that have not received the cash assistance are due to several factors, among others:

First, the villages have not submitted the revised village budgets (APBDes). Consequently, Ministry of Finance does not have strong a fundamental reason to disburse the budget.

Second, the villages are headed by acting village heads or the regional government is slow in responding to the disbursement.

Third, there are conflicts between village heads and Village Supervisory Body (BPD).

Fourth, if there are conflicts between village heads and Village Supervisory Body (BPD), they cannot hold village forums and draft the village budgets.

Fifth, village apparatus were discharged by the village heads as the implication of village head elections.

“Maybe during the election, the newly-elected village head was not supported by the current village apparatus. After the discharge, they do not have staff to draft the village budget. Thus, the Village Fund has not transferred to the village account.” the Minister explained.

On the other hand, there are villages that have not disbursed the cash transfer assistance though the budget was already stored at the village banking account. The reasons are:

First, Village Fund phase 1 has been used.

Second, problems of geographical terrain that hinder distribution to the people.

Third, the distribution is still waiting for the village heads’ approval.

Fourth, there is an updated version of social security net data so that it must be reviewed.

Fifth, it takes a long time to open bank accounts for the beneficiaries.

The other factor is disagreement between villagers and the village government where the villagers want the fund to be distributed evenly to all villagers regardless their economic conditions, while the Government has decided to distributed the fund to they in need.

There is also village which has not disbursed the cash assistance since the rich is helping the poor or the villagers already received other social assistance programs such as Aspiring Family Program (PKH), and Non-cash Food Assistance.

The Minister further said that the distribution of Cash Transfer Assistance to Villages is lower than the projection which is for 12,347,000 beneficiaries since the cash transfer assistance is only given for those who have not received other social assistance programs.

He also said that as of 16 June, Rp3 trillion of Village Fund has been used for the prevention of COVID-19 which is carried out by 1,851,000 volunteers.

For the record, Regulation of the Ministry of Law and Human Rights Number 7 of 2020 on the Amendment to Regulation of Village, Disadvantaged Regions and Transmigration Number 11 on the Extension of Cash Transfer Assistance to Villages program for July, August, and September has been promulgated since 16 June 2020.

The amount for each beneficiary will be cut from Rp600,000 to Rp300,000 per month in July to September. (TGH/EN)

Translated by : Rany Anjany
Reviewed by: M. Ersan Pamungkas