Social Protection in Indonesia
Ester Fitrinika HW
Directorate of Social Protection and Welfare
National Development Planning Agency – Republic of Indonesia
Seminar on “Social transfer in the fight against hunger”
Pnom Penh-Cambodia, 21-23th of February, 2013
- Area : 5.193.250 km2 (no.6 biggest country after Canada, USA China,
Brazil, Australia).
- 13.000 island.
- Population : 240 million (no.4 highest population after China, India,
USA)
2
BACKGROUND OF SOCIAL PROTECTION IN INDONESIA
1. Economic shock in 2005/6 due to the oil price hiked made the
gov’t had to shift from commodity subsidy to household
subsidy.
 Indonesia have a significant number of the poor, thus commodity
subsidy is unfair for the poor
 Targeted household subsidy (Unconditional Cash Transfer (UCT) then
transformed to CCT in 2007, Health insurance, Scholarship, and Rice for
the Poor) as an embryo to Social Protection
2. Due to internal political pressure, Indonesia have to prolong
fuel price subsidy to maintain its low price domestically. As a
result:
 Price difference between domestic price and international price.
 Big burden and uncertainty in government budget.
3
Dimension of Poverty in Indonesia
A significant
number of
vulnerable
Access inequality in health, nutrition,
education, water & sanitation, etc.,
especially for the poor in remote and
isolated areas
N
Non-monetary
Poverty
Interregional
disparity
Le ge nd :
0-5
5 - 10
10 - 15
15 - 20
20 - 50
1000
0
1000
2000 Kilo m eter s
Poverty rate across regions, 2009
5
Rural-Urban Disparity
Poverty Rates in Rural and Urban Areas
Gini ratios in urban and rural areas
Source: BPS, Susenas 2011
6
CURRENT SOCIAL PROTECTION SCHEME
MACRO ECONOMIC POLICY
Social
Insurance
Social Assistance
Cluster 3
•Pension.
•Old Age Security.
•Health.
•Work Injury.
•Death.
Cluster 2
Cluster 1
•Scholarship for the poor
•Supplemental food for
School Children Program
•Subsidized Rice
•CCT & CCT-Nutrition
(for the poorest)
•UCT
•Disabled
•Children with adversity
•Neglected old ages
•Indigenous communities
• National Program
on Community
Empowerment
(PNPM):
Urban, rural, rural
infrastructure,
less-dev’d regions
• PNPM Generation
(+Nutrition)
Credit
Facility to
SMEs
7
Poverty targeting beneficiaries by unified database – 2011, with validation, verifikation,
community poverty mapping.
Spending Priority of State Budget
2005
2006
2007
2008
2009
2010
2011
2012
Transfer to region
26.63
32.36
33.67
29.55
30.84
30.61
31.14
33.18
Subsidy
21.38
15.36
19.96
27.82
13.80
17.11
22.37
19.03
Education
13.89
17.59
18.90
15.58
20.81
20.00
20.21
20.20
Poverty Programs
4.14
6.67
7.06
6.12
8.00
7.23
7.10
6.91
Health
2.26
3.22
3.26
2.47
2.78
2.81
3.32
3.34
Agriculture
2.51
2.59
2.98
4.15
4.33
4.13
3.82
3.76
Infrastructure
4.62
7.72
7.95
7.95
9.12
8.83
9.51
11.25
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
Total Spending
Source: LKPP audited, except 2011 (unaudited) and 2012 (APBN-P)
Stunting
37
Peringkat
5 stunting
di dunia
Wasting
14
WHO Child growth
standards
Underw
eight
18
0
20
40
Will achieve 32% stunting in 2014 (end of MTDP)
Social protection related to food and nutrition:
•Supplemental food for School Children Program (1997,
2010):
- to contribute to acceleration of achievement of national
development goals related to: overcoming malnutrition
(the incidence of stunting in children aged 6-14 years was
13.3 % for boys and 10.9 % for girls) – universal
•Subsidized Rice (foor the poor):
- Subsidy to rice price for very poor h.h
- Deliver by local government (using the data from Central
Statistic Agencey)
10
•CCT (2007) & CCT-Nutrition (for the poorest, start 2013):
- CCT: for pregnat mother and children up to 18 years (junior
high school) to access health and education – #20
- Nutrition intervention for pregnant women up to 2 years
old children  to reduce stunting. Pilot project in 2 prov.
- in 2007 using data frm Central Statistic Agency, starting
2012 using “unified data base”
•UCT (Unconditional Cash Transfer)
aimed to reach one-third of Indonesian households to provide
some compensation for the reduction in the fuel subsidy at a
time of rapid fuel and food – particularly rice – price inflation.
Cash was disbursed in several rounds in 2005-06 and again in
2008-09. 30 $/month.
• PNPM Generation (CCT with nutrition program through
11
community empowerment)
Stunting
37
Peringkat
5 stunting
di dunia
Wasting
14
WHO Child growth
standards
Underw
eight
18
0
20
Will achieve 32% stunting in 2014 (end of MTDP)
40
THE WAY FORWARD (PLANNED)
• 2012 – 2014:
Accelleration of poverty reduction strategy.
• 2015-2025:
Transformation of poverty reduction program:
− Consolidate poverty alleviation programs (social
assistance)  complementary, well targeting
− Strengthening social insurance program.
“Master Plan of Poverty Reduction Acceleration in Indonesia”
as complementary of “Master Plan of Economic Development
in Indonesia”.
13
MACRO ECONOMIC POLICY
Cluster-1
RTHM
RTM
1. BEASISWA
MISKIN
2. JAMKESMAS
3. RASKIN
4. PKH
5. BLT (bila diperlukan
Cluster-2
PROGRAMPROGRAM
PEMBERDAYAAN
MASYARAKAT
saat krisis)
RTSM
6. Dll.
RTSM
*)
UMKM,
KREDIT
USAHA
RAKYAT
(KUR)
Cluster-4
RTHM
RTM *)
(PNPM)
Cluster-3
Peningkatan
Kesejahteraan
Masyarakat, serta
Perluasan dan
Peningkatan
Kesempatan
Kerja
1.
2.
3.
4.
5.
6.
PROGRAM RUMAH SANGAT MURAH
PROGRAM KENDARAAN ANGKUTAN UMUM MURAH
PROGRAM AIR BERSIH UNTUK RAKYAT
PROGRAM LISTRIK MURAH & HEMAT
Program Peningkatan Kehidupan Nelayan *)
Program Peningkatan Kehidupan Masyarakat Miskin Perkotaan
*)
Pengurangan
Angka
Kemiskinan
14
MP3EI
Increase economic
growth, inclusiveness &
equity
Equal economic dev’t in
the whole country
Increasing job creation
Local Gov’t
CSR or
NGOs
Synergi of
cluster 1, 2, 3,
&4
Access to
Conectivity
Arec
MP3KI
Reduce the poverty level
15
Terima kasih
Thank You
16
17
PKH (Family Hope Program)
INDONESIA’S CCT
Objective:
• Contribute to the acceleration of MDGs
 Break the circle of poverty chain for future
generation
 Reduce child and maternal mortality 
Indonesia is among the highest in SE Asia.
 Improve education attainment of poor
• Improve the quality of human resources through
improvement in access to health and education
services for the poor
18
PKH DESIGN
• ELIGIBILITY. CCT to the poorest households (based on PMT targeting)
which have expecting or lactating mothers and children between 0-15
years old.
• TIMELINE. PKH will be conducted from 2007 to 2020: Original design
assumed beneficiaries remain in the system for a max of 6 years.
• SPATIAL EXPANSION. Through phased expansion now reaches 25 of the
33 provinces.
• COVERAGE AND BUDGET. Total number of beneficiaries 2011 estimated
at 1.1 million HHs at a cost of $177,7 million; and for 2014 will target 3.0
million HHs at a cost of US$466,6 million.
• BENEFIT. Benefit ranges from a flat benefit of US$60 (min) to max of
US$220 per household per year.
19
Conditionalities
HEALTH
EDUCATION
The mother or the adult woman responsible
for taking care the children in the family
receives cash if:
 She goes to a nearby health facility for pre
and post natal check-ups; and or
 Children under 5 years old receives
regular immunization and check-ups.
The mother or the adult woman responsible for
taking care the children in the family receives cash
if:

Their school year old children are enrolled
in a school for basic education, and

Their children attend the school with
minimum 85% attendance.
20
BENEFIT SCENARIO
Benefit Scenario
Annual Benefit per Poor HH
Fixed Benefit
$ 20
Additional Benefit for Poor HH who has:
a. Children under 6 years old
b. Pregnant/lactating mother
c. Children in elementary school age
d. Children in junior secondary school age
$ 80
$ 80
$ 40
$ 80
Average benefit per poor HH
$ 140
Minimum benefit per poor HH
$ 60
Maximum benefit per poor HH
$ 220
Notes:
- Average benefit is calculated based on 16% of total annual income of poor HH.
- The range for minimum and maximum benefit is between 15-25% average annual income of poor HH.
- Benefit scenario will be evaluated periodically.
21
Trend of PKH Budget
1. National Budget
2007
2008
2009
2010
2011
2012
2013
2014
Target
(HH)
500.843
720.000
726.000
816.400
1.116.000
1.516.000
2.400.000
3.000.000
Budget
Rp 843 B
(US$
93,7 M)
Rp 1 T
(US$
111,1 M)
Rp 1.1 T
(US$
122,2 M)
Rp 1,3 T
(US$
144,4 M)
Rp 1,6 T
(US$
177,7 M)
Rp 1,8 T
(US$
200 M)
Rp 2,8 T
(US$
311,1M)
Rp 4,2 T
(US$
466,6 M)
*) 1 USD = ~Rp9.000
2. International support  Technical Assistance/Grant
 World Bank: Project preparation and evaluations
 GIZ (Germany) & AusAID: Technical expertise on management
improvement
 UNICEF: additional intervention for stunting (pilot phase)
22
PKH Future Plan
1. Achieve the coverage for all poorest families in accordance to target of the
National Mid Term Development Plan (RPJMN) 2010-2014.
2. Preparing “Exit Strategy” to guarantee the “graduate beneficiaries” to have a
fundamental transformation of livelihoods
•
•
•
Re-certification to measure the progress of socio-economic condition of beneficiaries
Transition and graduation schemes to link beneficiearies to other related social
protection programs (i.e: scholarship, health insurance, rice subsidy, livelihood, etc).
Strengthen cross sectoral coordination related to local government particularly in
improving supply side.
3. Improving level of benefit and other incentives such as ‘bonus of transition’ for
children of school level 6 to 9  to reduce school drop out and child labor.
4. Continue to improve program implementation: enhancing facilitator’s quality,
and synchronising benefit payment with school intake.
5. Improve the quality of database and monev instruments (MIS, households
survey).
23
Terima kasih
Thank You
24
Planning and Budgeting Process - Indonesia
Level/Periods
25 Years
5 Years
National
Ministry
Local
Long Term Plan
(RPJP)
Leaders’s
Platform (Vision)
President’s
Platform (Vision)
Medium Term Plan
(RPJMN)
Ministerial Strategic Plan
(Renstra KL)
Local Strategic Plan
(Renstra SKPD)
Annual Plan
(RKP)
Ministerial Workplan
(Renja KL)
Local Workplan
(RKPD)
State Budget
(APBN)
Detailed Workplan
(RKA-KL)
Local Budget
(APBD)
1 Year
25
Regional Disparity
Poverty Rate
Maternal mortality, 2008
Lao PDR
Timor-Leste
Cambodia
Timor-Leste Papua New Guinea
Cambodia
Maternal mortality ratio
50
500
100
1500
250
Under-five mortality, 2010
Indonesia
25
Philippines
Vietnam
100
Indonesia
Philippines
Vietnam
Thailand
25
China
2
5
5
10
China
Thailand
250
1000
5000
25000 75000
GDP per capita, US$
250
1000
5000
25000 75000
GDP per capita, US$
27
Social Assistance Expenditure
Categories
2011 Annual Expenditure (IDR)
Assistance for Elderly
%
101.114.400.000
0,37%
5.100.000.000.000
18,85%
Child Protection
287.127.300.000
1,06%
Disaster Assistance and Relief
Other Social Assistance (disability, old age
benefits)
429.040.000.000
1,59%
358.890.800.000
1,33%
Rice for the Poor (Raskin)
15.267.000.000.000
56,43%
Scholarship for the Poor
3.900.000.000.000
14,42%
CONDITIONAL CASH TRANSFER/CCT (PKH)
1.610.000.000.000
5,95%
27.053.172.500.000,0
100,00%
Share to State Budget (APBN)
1.320.751.300.000.000
2,05%
Share to GDP
7.226.900.000.000.000
0,37%
Health Assistance (Jamkesmas)
All Social Assistance
28