Direct Subsidies for the Poor

The government plans to increase subsidies for the poor by distributing non-cash direct assistance for electricity and liquefied petroleum gas (LPG).

Direct subsidies to poor households will be distributed beginning in 2018 (Kompas, 9/3). Non-cash direct energy subsidies complement the existing four assistance programs for the poor, namely rice for the poor (Raskin), the National Health Insurance program, educational assistance through Indonesia Smart Cards, and the PKH conditional cash transfer program.

Although the poverty rate has dropped in recent years we are facing a major problem, namely the slowdown of poverty reduction and widening inequality. To overcome this, in addition to efforts to improve public spending allocation and increase budget allocations for poverty reduction, a variety of affirmative steps directly targeting the poorest people must also be taken.