Limited Cabinet Meeting on Preparation for the Distribution of the 2021 Social Assistance, 29 December 2020 at the Merdeka Palace, Jakarta Province

Bismillahirrahmanirrahim

Assalamu’alaikum warahmatullahi wabarakatuh

Good morning,

May prosperity be upon us,

Distinguished Vice President,

Ladies and gentlemen,

In a bid to prepare for the distribution of social assistance, this morning we will discuss the matter, especially for year of 2021.

We know that in the 2021 State Budget we have allocated approximately Rp 110 trillion to continue the social protection program. The budget includes Rp 45.1 trillion Staple Food Card program, which is the distribution of food assistance to 18.8 million beneficiaries with each beneficiary receiving Rp 200,000 per month. The budget for PKH (Family Hope Program) is Rp 28.7 trillion for 10 million beneficiaries in four quarters. The budget for Cash Social Assistance is Rp 12 trillion for 10 million beneficiaries, with each beneficiary receiving Rp 300,000 (per month) for four months, while the budget for Pre-Employment Card program is Rp 10 trillion.

The budget for Direct Cash Assistance from Village Funds (BLT Desa) is Rp 14.4 trillion, while the budget for electricity discount for six months is Rp 3.78 trillion. We want to emphasize that, first, the distribution of the social assistance must kick off in January. I have conveyed this to the Coordinating Minister and now we have Minister of Social Affairs here. In early January, it must be distributed because it will provide a trigger to economic growth. Second, the staple food assistance, especially for the Greater Jakarta area, will be changed into cash aid through a postal service or banking system. In January we must be able to roll out the assistance because it relates to the leverage of the economy, the people’s purchasing power, and household consumption. We want the assistance to drive the demand.

Second, the data of beneficiaries must be completely clear to ensure that it is well-targeted. Do involve the regional governments in making data improvements.

Third, I have reiterated this, I warn you against embezzlement, which has happened at the Greater Jakarta social assistance program. Disburse the assistance to the beneficiary’s account. The process of digitizing social assistance data which is integrated with the banking system is important.

That concludes my introductory remarks. (RI/MUR)