Eden Stern *
In Indonesia, vulnerable populations navigate informal work, fluctuating incomes, and limited access to services. In 2024, the Indonesian government estimated that 24 million Indonesians, approximately 8.5% of the population, lived below the nationally measured poverty line. This statistic however does not accurately illustrate experiences of inequality and poverty in Indonesia. According to international research data, over 60% of the Indonesian population experiences income vulnerability, reflecting the widespread and uncertain nature of livelihoods even among those above the national poverty line.
Despite policy attempts to reduce these levels of poverty, existing government social assistance has coordination challenges that significantly obstruct implementation, and hinder the achievement of sustainable outcomes. Adaptive social assistance is crucial to meeting the needs of a community’s socio-economic mobility, and in ensuring its benefit reaches vulnerable households.
Bantuan Sosial (Bansos) is one of the Indonesian government’s core social security tools, aimed at alleviating poverty and the economic burden on vulnerable communities. These programs range from direct cash assistance (BLT), food aid (BPNT), the Family Hope Program (PKH) and various other forms of social assistance (BSU, BEP, PBIJK). This form of social assistance emerged through social reform policies responding to the 1997 economic crisis. It has since been shaped through the presidential terms of Susilo Bambang Yudhoyono and Joko Widodo. Following the pandemic, Bansos shifted to be increasingly disbursed using the social protection budget, a fund of over Rp 4000 trillion. In 2023, only 0.37% of the poorest segment of Indonesian society received complete social assistance from programs. The implementation of Bansos continues to have challenges, resulting in widespread misallocation and the exclusion of vulnerable populations from crucial assistance.
Despite its intentions and budget, those living in poverty or precarious informal housing have been disproportionately excluded from the provisions of Bansos. Its top-down approach pays minimal attention to the legitimate needs of vulnerable communities. There exists numerous general accessibility barriers, including recipient eligibility criteria, further adding to the exclusion of vulnerable populations. 60% of Indonesia’s total workforce is made up of informal workers who are not eligible for insurance protections, further broadening the gap towards implementing inclusive social protection systems. In the urban context, many low-income individuals and families move frequently or travel from their hometowns to acquire work or adequate housing, creating administrative barriers to obtaining identification or updating addresses. Without recognition of community dynamics, needs, and accessibility to services, a disconnect is created between the aim of Bansos and the realities of its implementation.
Issues regarding misallocation and corruption of the Bansos distribution have reduced the program’s overall effectiveness. Over 100,000 recipients of Bansos have been flagged as ineligible to receive payments, including civil servants, military members and police. This deepens the social distrust in government programs designed to support communities and reduces potential resources available to alleviate experiences of poverty. Further, a lack of coordination between central and regional governments in distributing Bansos, and inaccurate data collection of populations, has led to overlapping assistance and the exclusion of individuals that should receive support. Cases of outdated data where individuals who have moved address or are deceased remaining on the beneficiaries list for assistance, as well as double ups of beneficiaries names, are examples of inaccurate data collection. Together, these factors create a system that is yet to fully realise its potential in directing resources effectively towards poverty alleviation.
Harapan Fian is guided by the belief that effective social security should be empowering, community-led, and accurately responsive to people’s lived realities. While working with single mothers in low-income urban communities, it became clear how intersecting vulnerabilities compound to create unique financial and social stressors for them and their children. These observations have led to the implementation of our newest initiative, a 6-month program aimed at supporting 10 single mothers without access to Bansos, by providing social welfare support. The criteria was purposefully created to bridge the gap in effective support, selecting beneficiaries without permanent residence and complete identity documents, who are working in the informal sector, with young children in school or under school age. This program is born out of a desire to provide an alternative social assistance pathway, allowing for consistent communication from the participants regarding their needs and personal challenges. Additionally, this reciprocal communication will allow Harapan Fian to measure the effectiveness of social assistance delivery, providing a deeper understanding into how we can best support single mothers. Harapan Fian also prioritises working with mothers we have a preestablished relationship with, as we recognise the importance of continuity in social care, building a program imbued with stability and trust. In focusing on localised, relationship-based support systems the hope is to empower mothers and prioritise their needs within the community. By not only providing financial assistance but focusing on building financial literacy and long-term independence, an alternative social support system grounded in trust, equity and community can be developed.
The path to social justice begins with ensuring that no one is left behind in Indonesia’s social welfare system. Change comes in many forms, we at Harapan Fian hope to facilitate an alternative example for social welfare advocacy, promoting support, opportunity, and connection.
*Harapan Fian’s current internship student from ACICIS, she is currently completing her Bachelor of Social Work at the University of Sydney.
Reference List
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