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Govt disburses $448 million in second round of cash aid
The program seeks to encourage 9 million households to spend during Ramadan.
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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.
Indonesia’s poverty rate rose to a three-year high in March to 10.19 percent amid mass job losses and business closures.
Read also: Poverty rate hits three-year high
The government has allocated a total of Rp 28.71 trillion for the PKH this year. After the latest disbursement, 46.5 percent of the funds remain.
“The second phase of disbursement took place in April, so it coincided with the start of Ramadan,” said Risma.
The PKH forms part of the Rp 157.4 trillion social protection budget in the National Economic Recovery program this year. The allocation is 28.6 percent lower than that of last year as the government seeks to phase out the relief program.
