JAKARTA – The government continues to strengthen its commitment to improving the transparency and efficiency of social assistance (bansos) distribution through the adoption of digital systems. One concrete step is the pilot launch of the Payment ID system by Bank Indonesia (BI) on August 17, 2025, coinciding with Indonesia’s Independence Day.
Payment ID is designed as a unique digital identity that represents individuals or entities within the national payment system. With the ability to accurately track transactions, this system is expected to ensure that social assistance is delivered to the right beneficiaries.
Ramdan Denny Prakoso, Executive Director of BI’s Communication Department, emphasized that the trial will focus on non-cash social assistance as part of the government’s Social Protection Program (Perlinsos).
“The use of Payment ID will be based on the data owner’s private consent and will fully comply with Law No. 27 of 2022 on Personal Data Protection,” said Denny.
Payment ID will also be linked to the National Identity Number (NIK) and recipients’ transaction histories, enabling more precise verification. While the system promises efficiency and transparency, payment system observer Arianto Muditomo noted several critical challenges in its implementation, including data fragmentation across institutions and the risk of digital exclusion.
“Each ministry has different data standards and systems. Integration through Payment ID will require alignment of data formats, cross-system information sharing, and harmonization of complex regulations,” Arianto explained.
In parallel, the government is also preparing a pilot project for public service digitalization in Banyuwangi. Member of the National Economic Council (DEN), M. Firman Hidayat, explained that all residents in Banyuwangi will receive a digital ID integrated with biometric verification systems and financial transaction tracking.
“We’ll be able to objectively determine who qualifies for social assistance. If someone owns four cars and spends Rp 20 million per month, that should be a consideration,” Firman said.
The project is scheduled to begin in September 2025 and is expected to scale up nationally by 2026. With the integration of digital IDs, data exchange platforms, and digital payments, the government aims to make social assistance governance more accountable, inclusive, and immune to manipulation.
This move also addresses long-standing issues in the effectiveness of social assistance programs, such as duplicate data, ineligible recipients, and citizens without formal identification.
Through this initiative, the government demonstrates its serious commitment to building a tech-based social protection system that is not only efficient, but also fair and transparent.
