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Welfare program kicks off
On Monday, the government will officially launch President Joko âJokowiâ Widodoâs signature Productive Family welfare program, timing the roll out to help cushion the blow of the planned reduction of the national fuel subsidy, which Jokowiâs economic advisors have said could take place in early November
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n Monday, the government will officially launch President Joko 'Jokowi' Widodo's signature Productive Family welfare program, timing the roll out to help cushion the blow of the planned reduction of the national fuel subsidy, which Jokowi's economic advisors have said could take place in early November.
'In the launch of the Productive Family program, the President will introduce three cards; the Prosperous Family Card (KKS), the Indonesia Health Card (KIS), and the Indonesia Smart Card (KIP) on Nov. 3,' said Coordinating Human Development and Culture Minister Puan Maharani on Friday.
Puan said that President Jokowi had directed the relevant ministries to move forward the date for the launch of the three cards in order offset the impact of the subsidized fuel price increase.
'It is, of course, related to the government's plan to increase the subsidized fuel price this year. Those cards are one of the things that the President wanted to implement first, [...] should the plan [fuel price hike] be implemented in 2014,' she said.
The original date for the launch of the three programs was set for Nov. 7.
In the expected fuel subsidy cuts, the price of premium gasoline is likely to increase by Rp 3,000 per liter from the current price of Rp 6,500.
President Jokowi has pledged to reform Indonesia's burdensome and poorly targeted fuel subsidies, which are expected to cost Rp 276 trillion (US$22.7 billion) next year, or equal to 15 percent of total state spending.
The plan has elicited protests from critics who warn the subsidy cuts will adversely impact the poor.
Finance Minister Bambang Brodjonegoro had said that the government would prepare a support system for the policy, including the collection of data on low-income households and a targeted cash-assistance program.
Social Affairs Minister Khofifah Indar Parawansa said that some Rp 6.2 trillion ($517 million) would be needed to fund the initial phase of the program. 'That funding will come from the social assistance funds in the Social Affairs Ministry,' she said.
In the initial phase, the government will only offer the KKS and the KIS card in 18 provinces, regencies, and towns in Indonesia, while the KIP will be offered at the start of the 2015 school year.
- As fuel price hike looms, Jokowi rolls out welfare programs
- Jokowi's signature program will cost Rp 6.2 trillion in first phase
- Analysts have applauded the initiative
All Jakarta municipalities, Semarang in Central Java, Cirebon and Bekasi in West Java, Surabaya in East Java, North Maluku in Maluku, and Pematang Siantar in North Sumatra, are among the cities where the KKS family card will be made available.
Culture and Elementary and Secondary Education Minister Anies Baswedan said that in the initial phase the government would give the KIP to 152,434 students who were registered under the scholarships for poor students program (BSM).
Anies added that the number of KIP recipients would increase relative to the number of BSM recipients because the KIP would cover not only students from poor families, but also those from better-off, but still financially vulnerable families.
Health Minister Nila Moeloek said that the KIS would integrate public health efforts with individual health initiatives.
She added that in the initial phase of the program, some 432,000 poor people registered in the current national health insurance (JKN) program would receive coverage. 'Their JKN cards will be converted into KIS cards,' she explained.
Khofifah added that the KIS would be expanded in scope compared to the JKN, as it would cover 'invisible people', such as those categorized as internally-displaced or homeless.
Data from the Social Affairs Ministry revealed that more than 1.7 million citizens fell into the category of internally-displaced or homeless.
Arie Sudjito, a political analyst from Gadjah Mada University in Yogyakarta, said that he applauded the government's initiative, which he said indicated that President Jokowi was dedicated to carrying out his campaign promises.
'The program must take place as early as possible, just as President Jokowi promised. The public needs these basic services,' he said. (ask)
