Social Protection to Reduce Inequality

Promoting equality and ensuring social welfare has been a key pillar in Indonesia’s development plan. With the level of inequality already categorised as low by the World Bank by 2023, Indonesia now sees this achievement as a foundation to continue strengthening efforts in lowering the Gini ratio.

This move aims not only to reduce social inequality, but also to create a more inclusive and prosperous society.

To achieve this goal, Indonesia has implemented various effective social protection programmes. One of the key programmes is the Family Hope Programme (PKH), which provides conditional cash transfers to poor families.

Through PKH, the government not only provides financial assistance, but also ensures that beneficiary families fulfil certain obligations, such as ensuring their children stay in school and receive health services.

In addition to PKH, the Sembako Programme provides food vouchers to poor families to purchase basic food items. This programme is designed to increase people’s access to nutritious food and reduce the level of food insecurity among vulnerable groups.

In addition, cash transfers through the Village Fund also play an important role in improving the welfare of rural communities, which are often the most vulnerable to poverty.

Social insurance premium subsidies and labour market policies through the Pre-Employment Card are other measures taken to improve social protection in Indonesia.

By subsidising social insurance premiums, the government is trying to ensure that people have adequate access to health and pension services.

Meanwhile, the Pre-Employment Card helps people who are unemployed or working in the informal sector to improve their skills and get more decent jobs.

To promote equality and social welfare, Indonesia has pursued various social protection programmes and commitments to global initiatives.

With declining levels of inequality and a strong commitment to continue these efforts, Indonesia is on track to create a more inclusive and equitable society.

Source: Bappenas