The Government Increases the Effectiveness of Social Assistance Distribution Through Digitalization
Banyuwangi – The government continues to strive to improve the effectiveness of social assistance (bansos) distribution through the use of digital technology. The Ministry of Social Affairs (Kemensos) has begun piloting social assistance distribution using a digital payment ID system in Banyuwangi Regency, East Java.
Social Affairs Minister Saifullah Yusuf stated that digitizing social assistance distribution will provide numerous benefits, including accelerated distribution, timely disbursement, and accurate recipient identification.
“We have already begun the trial in Banyuwangi Regency. With this digitalization of social assistance distribution, God willing, it will be faster, more timely, and more accurate, ensuring it reaches those who truly deserve it,” said Saifullah Yusuf.
This step aligns with the government’s plan to implement a pilot project for digitalization in aid distribution. Banyuwangi was chosen as the initial location to test the system’s feasibility before national implementation.
National Economic Council (DEN) member Mochamad Firman Hidayat explained that the digitization of social assistance is part of the government’s broader digital transformation program through the development of Public Digital Infrastructure. This project encompasses three main pillars: digital ID, data exchange platform, and digital payments.
“We will start with social assistance. All residents of Banyuwangi will be given digital IDs. With digital IDs, we can accurately verify the identities of aid recipients using biometric recognition. So we can ensure that person A is truly A,” said Firman.
According to him, the digital ID will be integrated with various government administrative data, including transaction history. This integration will allow the government to monitor the eligibility of aid recipients more transparently.
“For example, if someone is registered as a social assistance recipient but owns four cars or has monthly transactions of up to IDR 20 million, that person is ineligible for assistance. This system will help ensure that social assistance reaches the right targets,” he explained.
Additionally, aid recipients will be directly connected to digital payments, allowing disbursement of funds without intermediaries and reducing the potential for misappropriation.
Eko Sakapurnama, a public policy observer from the University of Indonesia, believes that digitizing social assistance is a strategic step, but its success requires cross-sector synergy. He believes the biggest challenge is accelerating the verification process and accurately updating recipient data.
“Social assistance issues require collaboration across all parties, including the telecommunications industry ecosystem, to build a digital system that can verify data in real time. This way, recipient data truly reflects the conditions of eligible communities,” he said.
With digitalization, the government is optimistic that social assistance distribution can be more transparent and efficient. The pilot project in Banyuwangi is expected to become a model that can be replicated across regions, ensuring that state aid truly reaches those in need.
