Govt 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.
The Indonesian government is intensifying its efforts to transition social policy towards direct cash transfers and bolster financial services to enhance household welfare. This shift involves expanding direct cash transfers within the social protection system, despite challenges such as outdated recipient data and insufficient financial literacy.
During a national coordination meeting on Thursday, Coordinating Economy Minister Airlangga Hartarto announced a stimulus package for the fourth quarter of the year, which includes a nationwide bank account creation initiative, rice aid, and wage subsidies. The government has allocated Rp 1.28 trillion (US$70.8 million) to open bank accounts for 25 million individuals aged 17 and older in the bottom four income brackets.
Airlangga emphasized the program's goal of raising financial inclusion to nearly 99 percent, up from the current 93 percent. In addition to expanding bank account ownership, the government aims to ensure that improved access to financial services translates into tangible welfare benefits. President Prabowo Subianto inaugurated the National Council for Financial Welfare (DNKK) at the meeting, replacing the previous National Council for Financial Inclusion (DNKI).
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
