Cash Aid Would Be Transferred Every Month through Banks

KOMPAS/WAWAN H PRABOWO

President Joko “Jokowi” Widodo, accompanied by Social Affairs Minister Agus Gumiwang, has a meeting with the Friends of the Family Hope Program at Merdeka Palace, Jakarta, on Thursday (13/12/2018). The Family Hope Program is a social aid program for families to alleviate poverty, improve access to education and health and encourage recipient families to live independently.

JAKARTA, KOMPAS — The social safety net program to mitigate the impact of the COVID-19 outbreak in the form of cash aid for the poor, such as through the Family Hope Program (PKH) and the Staple Food Card program, will be transferred to recipients beginning April 2020. Previously, such social assistance was disbursed to recipients every three months.

The fund disbursement system has not changed, namely through members of the Association of State-Owned Banks (Himbara). Himbara members include Bank Mandiri, Bank Rakyat Indonesia, Bank Negara Indonesia and Bank Tabungan Negara.

The number of the recipients of the PKH program to mitigate the impact of the COVID-19 outbreak will be increased from 9.2 million families to 10 million families and its value will be increased by 25 percent. The budget for this program will reach Rp 37.4 trillion (US$2.28 million)

The budget allocation for the Staple Food Card program will reach Rp 43.6 trillion. The number of recipients will be increased from 15.2 million families to 20 million. Its aid value will be increased to Rp 150,000 to Rp 200,000 per family.

The director general of social protection and social security at the Social Affairs Ministry, Pepen Nazaruddin, said in Jakarta on Sunday (5/4/2020 ) that the change in disbursement scheme from three months to per month was based on President Joko “Jokowi” Widodo\'s instruction. "Cash aid will be disbursed beginning the second week of April," he said.

Kompas/Wisnu Widiantoro

Minister of Social Affairs Juliari P Batubara (right) during a visit to the Kompas Daily office, Jakarta, on Thursday (13/2/2020).

Last week, President Jokowi asked for the acceleration of the distribution of funds for the poor and those affected by the COVID-19 outbreak to meet their daily needs. Data of the 10 million recipient families will be submitted to Himbara members. The additional 800,000 families that will be place in the PKH program will receive special bank accounts for transfers or the cash will be delivered in person.

Pepen said that the Social Affairs Ministry would entrust the disbursement of the cash aid to Himbara. "In an urgent situation, it will be difficult to change the system. Himbara has determined the area and banks that will transfer the funds," he said. The director general of budget at the Finance Ministry, Askolani, said the Finance Ministry, Social Affairs Ministry and banks were looking for the most appropriate and effective steps to disburse the cash aid.

"No need to issue PMK [the finance ministerial regulation]. The disbursement will be carried out according to procedures set by the Social Affairs Ministry so that the funds can be disbursed this month, "Askolani said.

Safe and effective

In the midst of the COVID-19 outbreak, activities that can trigger a crowd should be avoided. Therefore, Himbara will find a way to ensure the distribution of the social safety net program will be safe and effective. The recipients will receive the money through ATMs or bank agents so that the disbursement will not trigger a crowd.

Meanwhile, Bank Mandiri corporate secretary Rully Setiawan said that the technicality of the disbursement the PKH aid was being studied so that the disbursement to recipients would be safe. "The new mechanism is still being prepared by Himbara members, the central government and regional governments," he said.

In addition to taking the PKH aid from the ATMs, beneficiary families can also get the money from to BNI’s Laku Pandai (branchless banking) agents.

Bank BNI corporate secretary Meiliana said, before the implementation of the social restrictions, the disbursement of the PKH aids in a number of areas ran normally. In addition to taking the PKH aid from the ATMs, beneficiary families can also get the money from to BNI’s Laku Pandai (branchless banking) agents.

Meanwhile, as of Sunday (5/4), 10 million household customers of state owned electricity company PLN begin to receive electricity for free or a discount of 50 percent. The incentives will be given to 31 million customers of 450 volt amperes (VA) and 900 VA categories for three months, namely April, May and June 2020.

The executive vice president of corporate communication and CSR of PLN, I Made Supra, explained that PLN would work together with village officials and the government to ensure that customers in remote areas get the incentive.

The data of the recipients, data validation, and supervision of the aid disbursement must be in line.

Economist at the Center of Reform on Economics in Indonesia, Yusuf Rendy, said that the efforts to accelerate the disbursement of the social assistance should not be hampered by a poor coordination. The data of the recipients, data validation, and supervision of the aid disbursement must be in line.

In addition to banking, he added, the government could involve financial technology companies, Laku Pandai branchless banking services, and minimarkets to accelerate the disbursement of the aid. (KRN/DIM/APO)