The Jakarta Post
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsGovt shifts social policy toward cash aid, financial welfare
The government is stepping up efforts to shift toward more targeted direct cash transfers as part of its social protection system, while looking to expand access to financial services to improve household welfare.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
People queue on May 10, 2024, for cash aid as part of the government’s Family Hope Program, in Bandung, West Java. (Antara/Raisan Al Farisi)
T
he government is stepping up financial inclusion efforts that would allow for more direct cash transfers in social protection, but inaccurate recipient data and a lack of financial literacy could complicate the plan.
During a national coordination meeting with regional leaders on Thursday, Coordinating Economy Minister Airlangga Hartarto unveiled a stimulus package for the fourth quarter of this year that includes a nationwide bank account creation initiative, along with rice aid and wage subsidies.
The government has earmarked Rp 1.28 trillion (US$70.8 million) to open bank accounts for 25 million people aged 17 and older in the bottom four income deciles.
“We are preparing the One Person, One Bank Account program. Through this program, we aim to raise our financial inclusion rate to nearly 99 percent, up from 93 percent [at present],” said Airlangga.
Read also: Govt to trial direct cash aid transfers in 2027
Furthermore, he said the government would move beyond simply expanding bank account ownership to ensure that the greater access to financial services translated into actual welfare improvements.
To mark the shift, President Prabowo Subianto launched the National Council for Financial Welfare (DNKK) at the same event, transforming what used to be the National Council for Financial Inclusion (DNKI).
