By Ardiana Wiranti)
The government continues to demonstrate a strong commitment to optimizing social assistance as a strategic instrument to maintain people’s purchasing power while simultaneously stimulating local economic activity. Amid global economic challenges and rising domestic needs, the distribution of regular social assistance stands as clear evidence of the state’s presence in ensuring that vulnerable groups remain protected. Through the Ministry of Social Affairs, the government has prepared the first phase of regular social assistance distribution scheduled to begin in February, covering the Family Hope Program (PKH) cash transfers and Non-Cash Food Assistance (BPNT). This program targets around 18 million beneficiary families across Indonesia, reflecting the scale of the state’s responsibility in safeguarding national social and economic stability.
Minister of Social Affairs Saifullah Yusuf emphasized that the first phase of social assistance distribution is designed to be timely and well-targeted, especially as it coincides with the Ramadan and Eid al-Fitr 1447 Hijri period. During this time, household needs typically increase, making social assistance crucial in supporting consumption and preventing a decline in the welfare of vulnerable groups. In 2026, BPNT is set at Rp200,000 per month for each beneficiary family and is distributed quarterly, meaning recipients receive Rp600,000 for the January–March period. Meanwhile, PKH assistance is provided variably according to beneficiary categories—ranging from school-age children, pregnant women, early childhood, the elderly, to persons with disabilities—with amounts adjusted to the specific needs of each group.
This policy not only impacts the fulfillment of basic needs but also generates a multiplier effect for local economies. Funds received through social assistance are generally spent on daily necessities at neighborhood shops, traditional markets, and small businesses. As such, social assistance serves as a direct stimulus that drives economic activity at the grassroots level. The circulation of money in villages and urban neighborhoods becomes more dynamic, while helping micro-enterprises survive and grow.
In terms of distribution mechanisms, the government continues to rely on two main channels: state-owned banks under the Association of State-Owned Banks (Himbara) and PT Pos Indonesia. Minister Saifullah Yusuf explained that the proposal to distribute assistance through the Red and White Village or Urban Ward Cooperatives is still awaiting direction from President Prabowo Subianto. This cautious approach shows the government’s intent to ensure that any new policy is fully prepared in terms of systems and regulations before implementation, so as to avoid problems on the ground.
Furthermore, the government has made an important breakthrough through digital transformation in social assistance distribution. This step addresses long-standing issues such as data inaccuracies, overlapping beneficiaries, and public concerns over transparency. The Minister’s Expert Staff for Planning and Evaluation of Strategic Policies at the Ministry of Social Affairs, Andy Kurniawan, explained that the government is currently piloting a digital, data-based beneficiary ranking system. This system enables a more objective selection process by utilizing a range of socio-economic indicators.
Under this new mechanism, communities still have the opportunity to apply as prospective beneficiaries. However, applications will be verified administratively and digitally. This approach reflects the government’s effort to assess public welfare conditions more comprehensively and factually. Andy Kurniawan stressed that ranking is necessary given the limited state budget compared to the large number of people in need. Therefore, priority is given to groups with the lowest levels of welfare.
This transparency is expected to reduce public suspicion while increasing trust in government policies. The system is not intended to calculate poverty statistics, but rather to function as a filtering tool to determine eligibility for social assistance. The ranking variables are developed by a Targeting Team involving cross-ministerial and institutional representatives, academics, and poverty experts. All processes are based on academic studies and are methodologically tested to ensure accountability. The primary data source used is the National Socio-Economic Single Data system, which is continuously updated to reflect current conditions.
This digital transformation has also received support from the Ministry of Administrative and Bureaucratic Reform (PANRB). Assistant Deputy for Digital Service Integration, Adi Nugroho, views the new social assistance distribution system as a key component of accelerating the digital transformation of public services. Through this approach, administrative barriers that have long burdened poor communities can be eliminated. Social assistance registration no longer depends on neighborhood heads or village officials, but can be conducted openly through digital access points down to the Dasa Wisma level, with the assistance of community cadres and social agents.
Through these various measures, the optimization of social assistance is no longer merely a charitable policy, but a sustainable social and economic development strategy. Well-targeted, transparent, and data-driven social assistance is believed to strengthen social resilience, increase purchasing power, and drive local economic growth. The state’s presence through this policy serves as an essential foundation for maintaining national stability and realizing more equitable welfare for all Indonesians.
*) The author is a public policy observer.
