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Jakarta Post

Government to extend cash-aid program to mid-2015

The government plans to extend the disbursement of cash aid to poor families until the middle of 2015 following the recent increase in subsidized fuel prices

Hans Nicholas Jong (The Jakarta Post)
Jakarta
Fri, November 21, 2014

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Government to extend cash-aid program to mid-2015

T

he government plans to extend the disbursement of cash aid to poor families until the middle of 2015 following the recent increase in subsidized fuel prices.

Coordinating Human Development and Culture Minister Puan Maharani said on Thursday that the Prosperous Family Card (KKS), a cash-aid program that compensates for the fuel-price increases, was likely to be extended to cushion the impact on poor people.

'€œThe KKS is one of the ways to help switch from consumerism to productiveness and it is valid until next month. After discussing the 2015 [draft state budget], God willing we will extend it for another six months,'€ she told reporters on the sidelines of an E-Transparency Award ceremony in Central Jakarta.

Puan said the government could only extend the program until mid-2015 as next year'€™s state budget had yet to be discussed with the House of Representatives.

'€œThere are rules on how to use a budget. This [KKS] currently uses the 2014 state budget and we have to talk about it in the 2015 draft state budget,'€ she said.

As for other welfare programs, namely the Indonesia Health Card (KIS) and the Indonesia Smart Card (KIP), the government will proceed with its plan to disburse the two cards over the next five years.

'€œFor the KIS and the KIP, of course they will be distributed step-by-step as planned and everyone can enjoy their benefits,'€ Puan said.

With few details on the two cards available, the KKS is the only one that has a clear plan on its disbursement.

The government, through the KKS, will disburse Rp 6.2 trillion, which will come from the Social Affairs Ministry'€™s social-assistance funds, to 15.5 million low-income families.

In its initial phase, the government will distribute KKS to 1 million poor families until December this year.

'€œThe 14.5 million will receive the KKS step-by-step in 2015,'€ Rudi Gobel, communication unit head for the government-sanctioned National Team for the Acceleration of Poverty Reduction (TNP2K), told The Jakarta Post on Thursday.

With only 1 million benefitting from the new cards, the remaining 14.5 million can still access social-aid funds by using their old direct cash assistance (BLT) cards distributed during the administration of then president Susilo Bambang Yudhoyono.

Each of these families will receive Rp 400,000 for November and December.

'€œThe KKS can still be used [to withdraw aid] whenever the government distributes social aid funds,'€ Rudi said.

The KKS is channeled through saving accounts at Bank Mandiri to encourage people to save.

The money can also be withdrawn at post offices.

Under the Yudhoyono administration, the government distributed Rp 100,000 per month per needy family through post offices, from where families collected their money in cash every month.

Beneficiaries of the aid program can check the balance of their accounts using cellular phones with special SIM cards that facilitate electronic money transfers.

Some post offices will provide mobile phones for aid recipients who do not have cellular phones, to access their accounts.

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