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PKH boosts livelihoods of low-income families

Recipients of the government-funded social assistance Family Hope Program (PKH) have seen their livelihoods improve after receiving conditional cash transfers, according to research conducted by the SMERU Research Institute.

Mardika Parama (The Jakarta Post)
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Sat, October 10, 2020 Published on Oct. 9, 2020 Published on 2020-10-09T19:53:43+07:00

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R

ecipients of the government-funded social assistance Family Hope Program (PKH) have seen their livelihoods improve after receiving conditional cash transfers, according to a study.

World Bank senior protection specialist Ekki Syamsulhakim said on Thursday the program had successfully increased school enrollment rates, reduced stunting and prevented child labor by providing extremely impoverished families with an additional safety net.

“While the program has not performed well according to some statistical indicators, it has had a positive impact on some important indicators, such as the recipient families’ health, and resulted in an intended behavioral change. In conclusion, the PKH has had a positive impact,” he said during an online webinar held by the SMERU Research Institute.

The government disbursed Rp 32.65 trillion (US$2.21 billion) through the PKH program to 10 million families last year, according to the Social Affairs Ministry. Each family received a base benefit of Rp 550,000 per year and added benefits depending on the family’s circumstances, such as an additional Rp 2 million per annum if there was a high school student in the family.

The study found that the PKH had increased school re-enrollment by 53 percent for recipient families’ children aged 7 to 15 years old who were not enrolled or had left school, and reduced the number of children engaged in wage work by 48 percent.

In terms of health, toddlers of recipient families are now 23 percent less likely to suffer from stunting. The research also showed that pregnant mothers that received PKH aid were more likely to deliver their children at a health facility.

Despite the success in reducing stunting, the PKH has not resulted in a significant increase in the child immunization rate or vitamin A consumption.

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