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Govt preparing regulation for cashless aid disbursement
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Coordinating Human Development and Culture Minister Puan Maharani (left) inspects a bronze statue of her grandfather and the country’s first president Sukarno at Banceuy penitentiary in Bandung, witnessed by her mother and former president Megawati Soekarnoputri (second left) and President Joko “Jokowi” Widodo. (JP/Arya Dipa)
T
he government is trying to complete a draft presidential regulation concerning the cashless distribution of government aid to low income people. Officials gathered to discuss the matter on Monday.
The conversion of rice distribution into a non-cash system is slated to begin this month, Coordinating Human Development and Culture Minister Puan Maharani said after a meeting at his office in Central Jakarta.
Finance Minister Sri Mulyani Indrawati, Social Affairs Minister Khofifah Indar Parawansa, Bank Indonesia Governor Agus Martowardojo and Financial Services Authority (OJK) chairman Muliaman D. Hadad attended the meeting.
"Each ministry and institution has to [prepare itself to] anticipate the implementation so that it can run well," Puan said.
(Read also: High noon for Jokowi's social welfare ambitions)
During the initial stage of the altered program, as many as 1.4 million people in 45 cities and six regencies from a total of 15.5 million aid recipients nationwide will receive cashless aid worth Rp 110,000 (US$8.20) through a card, called a “combo card”, every month. The card can be swiped at designated “e-warungs” (e-shops) to buy staple foods such as rice and eggs.
Currently, as many as 9,782 e-warungs have already carried out these kinds of transactions, Khofifah said. Assuming one e-warung can serve 150 aid recipients, the program will need around 10,753 e-warungs.
"We still need more agents and so we will relax the requirements [to open an e-warung] and try to encourage existing warungs and grocery shops to act as agents too," Muliaman said, adding that the card was linked to a bank account opened at one of four participating state-owned lenders. (bbn)
