By: Novi Anggina Andayani *)
During Ramadan 2026, the Indonesian Ministry of Social Affairs reaffirmed its commitment to strengthening the social safety net through a dual social assistance policy integrated with the village economic empowerment agenda. This policy is designed not only to maintain the purchasing power of underprivileged communities during the holy month but also as a strategic step to build the foundation of community-based economic independence. The state is fully present, protecting vulnerable groups while paving the way for transformation towards sustainable prosperity.
The dual social assistance scheme includes the disbursement of Non-Cash Food Assistance or the Staple Food Program of IDR 600,000 per beneficiary family, spread over three months at once in early 2026. Distribution is carried out through the Family Welfare Card (Kartu Keluarga Sejahtera), which is connected to Himbara banks such as Bank Rakyat Indonesia, Bank Negara Indonesia, Bank Mandiri, and Bank Syariah Indonesia. This system ensures that aid is distributed transparently, accountably, and efficiently to remote areas, while strengthening national financial inclusion.
In addition to cash transfers, the government is distributing additional food packages consisting of 20 kilograms of premium rice and 4 liters of packaged cooking oil, distributed directly through village and sub-district offices. This combination of cash and in-kind assistance demonstrates a comprehensive policy design, maintaining household liquidity while ensuring the availability of essential staples. This approach ensures that beneficiary families have a secure food supply throughout Ramadan and Eid al-Fitr, allowing them to observe their religious obligations with peace and dignity.
Disbursement realization in the first quarter of 2026 demonstrates strong execution capacity. More than 85 percent of the budget, or over IDR 15 trillion, has been disbursed. The Family Hope Program, allocated to 10 million beneficiaries (KPM), achieved a realization rate of over 89 percent, while the Basic Food Assistance program reached more than 15 million beneficiaries (KPM), or approximately 86 percent of the target. These figures confirm that Indonesia’s social protection system is increasingly robust, supported by updates to the National Single Social and Economic Data, which improves targeting precision.
Social Affairs Minister Saifullah Yusuf emphasized that dual social assistance is not merely a consumptive aid instrument, but rather a platform for empowerment. He emphasized that approximately 18 million beneficiaries receiving Ministry of Social Affairs social assistance will be encouraged to become members of the Merah Putih Village Cooperative. This step represents a significant breakthrough in shifting the paradigm of aid recipients into productive economic actors. This transformation reflects the broader vision of transforming social protection into a ladder to economic mobility.
Cross-ministerial synergy strengthens this policy direction. Minister of Cooperatives Ferry Juliantono stated that eight village cooperatives have been established in Serang Regency, which have begun operations and demonstrated promising business dynamics. The presence of village cooperatives is a driving force for the local economy, opening access to capital, expanding distribution networks, and strengthening community bargaining power in the supply chain.
Support was also affirmed by the Minister of Villages and Development of Disadvantaged Regions, Yandri Susanto, who described this collaboration as a strategy to strengthen Village Fund governance. He emphasized that the focus is on strengthening management patterns to make them more productive through cooperative institutions, not reducing funds. With proper governance, cooperative assets can develop into village assets, with some of the proceeds contributing to village income. This model creates a healthy and sustainable economic cycle at the local level.
The integration of social assistance with the strengthening of village cooperatives underscores Indonesia’s increasingly progressive social policy direction. The government is not stopping at distributing aid but rather building an inclusive people’s economic ecosystem. Recipients of the Family Hope Program and Staple Food Assistance are encouraged to move up a class, utilizing cooperative networks to develop micro-enterprises, increase productivity, and expand market access. Thus, social assistance serves as initial capital for growth, not merely a means of survival.
Macroeconomically, this policy helps maintain the stability of domestic consumption, the primary driver of national growth. When vulnerable groups maintain purchasing power, local economic activity strengthens. At the same time, the establishment of village cooperatives expands the base of community-based production and distribution. Villages emerge as new growth centers, supporting national economic resilience from the grassroots level.
The 2026 Ramadan dual social assistance program thus symbolizes the state’s holistic presence: protecting, empowering, and empowering. Through massive distribution, expanding coverage to tens of millions of recipients, and integrating with the Merah Putih Village Cooperative, the government demonstrates that Indonesia’s social safety net continues to evolve into a strategic development instrument. Ramadan is not only a time for worship, but also a time to strengthen social solidarity and revive the village-based people’s economy.
Furthermore, strengthening the social safety net integrated with the empowerment of village cooperatives demonstrates a direction for equitable and future-oriented development. This policy emphasizes that social assistance is not the end point, but rather the starting point for socio-economic transformation. Ramadan serves as a momentum for consolidating national solidarity, where the state, local governments, and communities work together to build an inclusive welfare ecosystem. With this structured and collaborative approach, Indonesia demonstrates that social protection can align with the agenda of people’s economic independence, creating a solid foundation for village progress and strengthening the national economy as a whole.
*) The author is an observer of Village Fund Regulations and Public Governance
