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Jakarta Post

Building an inclusive, integrated social safety net

  • Marshiella Pandji

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PREMIUM
London   /   Mon, March 2, 2020   /  11:39 am
Building an inclusive, integrated social safety net Residents wait in line at the Health Care and Security Agency (BPJS Kesehatan) office in Matraman, Central Jakarta On Nov. 11, 2019. (JP/Dhoni Setiawan)

According to Daron Acemoglu and James Robinson’s seminal work Why Nations Fail, institutions are what stand between prosperity and poverty. When institutions are inclusive, rather than extractive, prosperity prevails. Inclusive economic institutions encourage people’s participation in economic activities and champion economic freedom. Such institutions are embodied in quality public services, among other things. By this logic, the Indonesian government is right in making inclusive growth the North Star of its macroeconomic policy for the 2020 fiscal year. Among the objectives of the government are a marked reduction in poverty, inequality and unemployment levels. This will push quality public services and social protection programs high up the policy agenda, buttressed by this year’s national development theme of “boosting human capital for quality g...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.