Luhut Says Cash-Transfer Welfare Program Will Be Tested in Early 2027

Indonesia is preparing to test a new welfare model that would send assistance directly to eligible people instead of providing incentives to products, Economic Council Chairman Luhut Binsar Pandjaitan said.

The pilot is planned for early 2027. Luhut said the eventual program could reach tens or hundreds of millions of Indonesians who qualify for cash transfers, although the government will first test how the system works.

“Because welfare assistance may no longer provide incentives to products, we will give incentives directly to people. So, tens of millions or hundreds of millions of our people who qualify to receive cash transfers could, I think, be covered starting early next year. We will conduct a pilot in early 2027,” Luhut said in Subang, West Java, on Thursday.

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Because welfare assistance may no longer provide incentives to products, we will give incentives directly to people. So, tens of millions or hundreds of millions of our people who qualify to receive cash transfers could, I think, be covered starting early next year. We will conduct a pilot in early 2027.

The government is also promoting AI-based government technology as part of efforts to increase transparency. Luhut said digital tools could reduce opportunities for irregularities by limiting direct contact during administrative procedures.

“People’s meetings will be greatly reduced, because everything can be obtained through facial recognition and biometrics. I consider this data collection a great leap in the era of President Prabowo’s administration,” he said.

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People’s meetings will be greatly reduced, because everything can be obtained through facial recognition and biometrics. I consider this data collection a great leap in the era of President Prabowo’s administration.