Luhut: Welfare Aid Could Eventually Be Paid in Cash, Possibly Through Vouchers

Indonesia plans to test a new system for distributing social assistance through direct cash transfers in the first or second quarter of 2027. Economic Council Chairman Luhut Binsar Pandjaitan said the government is still processing recipient data to make sure the aid reaches the right people.

“We plan to finish all of that by the end of this year. At the beginning of next year, in the first or second quarter, we will conduct a trial,” Luhut said in Jakarta. He said the eventual system would be based on cash transfers, although the government was considering ways to ensure the money goes toward designated needs.

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We plan to finish all of that by the end of this year. At the beginning of next year, in the first or second quarter, we will conduct a trial.

“Social assistance will ultimately be given in cash, perhaps using vouchers, so that it is used properly. It cannot be used for online gambling or alcoholic drinks, but perhaps for eggs, chicken and so on,” he said.

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Social assistance will ultimately be given in cash, perhaps using vouchers, so that it is used properly. It cannot be used for online gambling or alcoholic drinks, but perhaps for eggs, chicken and so on.

Luhut said officials were calculating assistance of around 5.4 million rupiah per family, although the final amount would depend on President Prabowo Subianto. He also said the government was developing a digital system linked to the Home Affairs Ministry’s civil registration database. Facial recognition would help verify recipients, while people who believe they qualify but do not receive aid could file objections.

The aim, Luhut said, was to make assistance more targeted and fairer. The system is being developed gradually so the government can evaluate its performance before expanding it more widely.

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It will be targeted and will create fairness. Right now, many people who are not entitled receive it. But many people who are entitled do not receive it.