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Jakarta Post

Govt disburses $448m in second round of cash aid

The program seeks to encourage 9 million households to spend during Ramadan.

Dzulfiqar Fathur Rahman (The Jakarta Post)
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Mon, April 19, 2021 Published on Apr. 19, 2021 Published on 2021-04-19T12:28:07+07:00

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Govt disburses $448m in second round of cash aid A state-owned postal service PT Pos Indonesia employee takes a picture of a cash aid recipient in Sawah Besar, Central Jakarta. (JP/Dhoni Setiawan)

T

he government has disbursed Rp 6.53 trillion (US$448.08 million) in cash aid to some 9 million lower-income households to help cover heightened needs during Ramadan as many still reel from the pandemic-induced economic downturn.

It is the second round of aid provided through the Family Hope Program (PKH) this year. The government disbursed Rp 6.82 trillion to similar households in January.

The PKH is a conditional cash transfer program that grants eligible recipients at least Rp 550,000 in yearly aid. Households receive extra aid if they include more dependents, such as pregnant women, children enrolled in school, disabled people and the elderly.

“During Ramadan, their spending will rise to cover sahur (predawn meals) and iftar, to buy takjil (breaking-of-the-fast snacks) or other additional food,” said Social Affairs Minister Tri “Risma” Rismaharini on Sunday.

“With their savings increasing, their purchasing power will improve.”

Hundreds of millions of Muslims have begun observing Ramadan, a period that usually sees rising food prices in line with higher demand. The fasting month is expected to end on May 12 or 13 this year.

The country’s annual inflation rate remained low in March at 1.37 percent, according to Statistics Indonesia (BPS), but the prices of some key comestibles, including chili, chicken meat and garlic, have started picking up as the country’s biggest holiday commences. 

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