President Jokowi Orders Bappenas to Restructure Social Protection System

Limited Meeting on Social Protection System Reform held at the Merdeka Palace, Jakarta, Tuesday (05/01). (Photo: Press Bureau of Presidential Secretariat/Kris)

President Joko “Jokowi” Widodo ordered Ministry of National Development Planning (PPN)/the National Development Planning Agency (Bappenas) to reform social protection system.

“Bappenas was assigned by the President to restructure this social protection system,” Minister of National Development Planning (PPN)/Head of the National Development Planning Agency (Bappenas) Suharso Monoarfa said at the Limited Meeting on Social Protection System Reform, at the Merdeka Palace , Jakarta, Tuesday (05/01).

This system includes social assistance by the Government for the community with certain conditions without them having to pay contributions as well as social security which is obtained by each member of the community as long as they participate in paying contributions.

“However, we know very well that not all Indonesian citizens have the same ability in terms of social security and also in terms of obtaining or not obtaining social assistance. So, going forward, we rearrange, we redesign, we design the things that we have done, for us to integrate them in such a way,” Suharso said.

Addressing data accuracy on the recipients of social assistance is vital in ensuring the effectiveness of social assistance distribution as well as social security distribution.

Digital transformation is essential to ensure the ease, speed, and accuracy of the distribution of social assistance, given that 55 percent of households rely on government assistance to overcome food insecurity during the COVID-19 pandemic.

“So, data is a necessity that we cannot avoid and is the most important factor in implementing social protection through social assistance programs,” he said.

Suharso stated that Social Protection System Reform will be implemented in the near future to the scheduled 2024.

“We will make it in such a way, several social assistance programs that have been planned by ministries and institutions, we will try to rearrange them so that they are effective and we can combine them together to become only a few strategic programs in the framework of social assistance,” Suharso said.

Apart from mitigating the impact of the COVID-19 pandemic, the provision of social assistance also aims to reduce poverty.

The Minister stated that improving the quality of human resources and maintaining people’s purchasing power with a Human Development Index target of 72.78–72.95 and a Poverty Level of 9.2–9.7 percent are among the development targets that are in line with the implementation of the 2021 Government Work Plan on Accelerating Economic Recovery and Social Reform.

“We want to reduce the poverty level, especially at the lowest level, namely extreme poverty, our extreme poverty is at 2.5-3 percent. The President wanted it to reach zero percent by 2024,” he said.

The Government will focus on vulnerable and chronic poverty groups to achieve the agenda.

The Ministry draws up six strategies to manage the programs. First, data transformation towards socio-economic registration through improving data and developing a 100 percent integrated socio-economic data collection system.

Second, program integration and improvement of social workers on integration and coordination of social assistance and social security as well as integrated referral services and HR certification.

Third, development of digital distribution mechanism for cash transfers as well as through PT Pos Indonesia, online motorcycle taxis in cities for grocery assistance, and others.

Fourth, development of adaptive social protection schemes through the adaptation of social protection schemes due to natural, socio-economic, and health shocks.

Fifth, digitalization of distribution through digital platforms (data integration), National Identification Number; implementing electronic Know Your Customer (e-KYC) and opening a social assistance account, as well as banking and fintech payment platforms.

Sixth, reforming the financing scheme through the development of innovative, expansive, and sustainable financing schemes. (TGH/PR of BAPPENAS/UN) (FI/MMB)