SOCIAL PROTECTION PROGRAMS IN INDONESIA: Accuracy, Leakages, and Alternative Criteria of Poverty

Similar documents
SUMMARY OF THE PROGRAM KELUARGA HARAPAN AND ITS TECHNICAL ASSISTANCE FRAMEWORK

Social Protection Strategy of Vietnam, : 2020: New concept and approach. Hanoi, 14 October, 2010

MOVING FROM A GENERAL SUBSIDY INTO A TARGETED ONE: INDONESIAN EXPERIENCE IN FUEL SUBSIDY AND SOCIAL PROTECTION REFORM

Education and Employment Status of Dalit women

EVALUATING INDONESIA S UNCONDITIONAL CASH TRANSFER PROGRAM(S) *

Indonesia s Experience

Socio-Economic Status Of Rural Families: With Special Reference To BPL Households Of Pauri District Of Uttarakhand

SECTOR ASSESSMENT (SUMMARY): PUBLIC SECTOR MANAGEMENT (PUBLIC EXPENDITURE AND FISCAL MANAGEMENT) 1

INSTITUTIONAL SYSTEMS OF THE SOCIAL SAFETY NET PROGRAMMES IN THE OIC MEMBER COUNTRIES

THE QUEST FOR ACHIEVING SOCIAL PROTECTION FOR ALL IN NEPAL: CHALLENGES AND OPPORTUNITIES

Fiscal policy for inclusive growth in Asia

Executive Summary. Findings from Current Research

Life Insurance Products for Pensions in Vietnam

Older workers: How does ill health affect work and income?

All social security systems are income transfer

POVERTY, GROWTH, AND PUBLIC TRANSFERS IN TANZANIA PROGRESS REPORT ON THE NATIONAL SAFETY NET STUDY

Impact of fglobal lfinancial i and. Lao CBMS Sites

India s model of inclusive growth: Measures taken, experience gained and lessons learnt

Challenges of Global Change for Agricultural Development and World Food Security

WMI BACKGROUND, METHODOLOGY, AND SUMMARY 3

Third Working Meeting of the Technical Advisory Group (TAG) on Population and Social Statistics

EXIT STRATEGY FOR PROGRAM KELUARGA HARAPAN (PKH) FAMILY HOPE PROGRAM. Group Work Social Safety Net Course 2011

WHAT WILL IT TAKE TO ERADICATE EXTREME POVERTY AND PROMOTE SHARED PROSPERITY?

THE IMPACT OF CASH AND BENEFITS IN-KIND ON INCOME DISTRIBUTION IN INDONESIA

LAO POVERTY REDUCTION FUND II IMPACT EVALUATION

Determining Tax Literacy of Salaried Individuals - An Empirical Analysis

UPDATED FINANCIAL ANALYSIS

SOCIAL SECURITY IN INDIA: STATUS, ISSUES AND WAYS FORWARD

Retrospect and Prospects. Secretary Ministry of Planning and Development Government of Pakistan

The Role of Social Policy for Combating Child Poverty and Promoting Social Development: A Transformative Approach

PART ONE. Application of Tools to Identify the Poor

DIGITAL FINANCIAL INCLUSION OVERVIEW OF POLICY ISSUES

Human Development Indices and Indicators: 2018 Statistical Update. Brazil

Regional Consultation on key Findings on Strengthening Income Support (26 March 2014) Regional Report : Overview of Asia-Pacific region

Navigating Fuel Subsidy Reform: Indonesia s Experience

Developing Poverty Assessment Tools

FACT SHEET - LATIN AMERICA AND THE CARIBBEAN

Does Elite Capture Matter? Local Elites and Targeted Welfare Programs in Indonesia

Human Development in India

Human Development Indices and Indicators: 2018 Statistical Update. Peru

Aging in India: Its Socioeconomic. Implications

Universalising Social Protection in India: Issues and Challenges

UNICEF Unconditional Cash Transfer Program

CURRICULUM VITAE. Tel:

Promoting Fairness and Sustainability of Pension Systems in East and Southeast Asia

Social Protection and Informal Economy: Formalize the Informal Sector

Formulating the needs for producing poverty statistics

ASPIRE: Atlas of Social Protection Indicators of Resilience and Equity

Financing ASP Fiji s Case TC Winston in 2016

SOCIAL PROTECTION IN VIETNAM: Successes and obstacles to progressively

ASIAN DEVELOPMENT BANK

THINK DEVELOPMENT THINK WIDER

ACCELERATING THE IMPLEMENTATION OF THE 2030 AGENDA WORLD WITHOUT POVERTY

Human Development Indices and Indicators: 2018 Statistical Update. Dominica

Lecture 19: Trends in Death and Birth Rates Slide 1 Rise and fall in the growth rate of India is the result of systematic changes in death and birth

FINDING THE POOR VS. MEASURING THEIR POVERTY: EXPLORING THE DRIVERS OF TARGETING EFFECTIVENESS IN INDONESIA

Government Quality Matter?

ISPA Social Protection Payments Tool

Correlation of Personal Factors on Unemployment, Severity of Poverty and Migration in the Northeastern Region of Thailand

FAMILY ORIENTED POLICIES FOR POVERTY AND HUNGER REDUCTION IN DEVELOPING COUNTRIES AND INDICATORS OF PROGRESS

2007-E-7. Multidimensional Poverty in Indonesia: Trends, Interventions and Lesson Learned

Economic Consequence of Population Ageing in Asia

Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized

SCALING UP INSURANCE

Indonesia has made substantial progress. Leaving poverty behind. Vivi Alatas. Indonesia 360 o

Human Development Indices and Indicators: 2018 Statistical Update. Costa Rica

Hawala cash transfers for food assistance and livelihood protection

SECTION - 13: DEVELOPMENT INDICATORS FOR CIRDAP AND SAARC COUNTRIES

Human Development Indices and Indicators: 2018 Statistical Update. Argentina

Educational and Health Status of Scheduled Tribes of Solabham Village in G. Madugula Mandal of Visakhapatnam District, Andhra Pradesh

R E A C H I N G T H E P O O R 2008 W I T H H E A LT H S E RV I C E S

medicaid a n d t h e Aging Out of Medicaid: What Is the Risk of Becoming Uninsured?

Global Campaign on the extension of Social Security for all. Luis Frota, STEP Programme ILO Social Security Department Turin, 27 November 2007

JEJAK Journal of Economics and Policy

STEP 7. Before starting Step 7, you will have

Introduction. Poverty

Human Development Indices and Indicators: 2018 Statistical Update. Paraguay

India s Support System for Elderly Myths and Realities

Economic and Social Survey of Asia and the Pacific 2017 Governance and Fiscal Management

Labor Participation and Gender Inequality in Indonesia. Preliminary Draft DO NOT QUOTE

Inequality in China: Recent Trends. Terry Sicular (University of Western Ontario)

1. Setting up a Registry of Beneficiaries (RoB)

OFFICE OF THE COORDINATING MINISTER FOR ECONOMIC AFFAIRS OF THE REPUBLIC OF INDONESIA

Social Protection in Indonesia:Past Experiences and Lessons for the Future.

World Social Security Report 2010/11 Providing coverage in times of crisis and beyond

Southern Punjab Poverty Alleviation Project (SPPAP)

Introduction. MPOC commissioned Europe Economics, a London based consultancy, to prepare a report on the global economic benefits of Palm Oil.

Free of charge. EEC PRESS AND INFORMATION Free for publication SERVICE BANGKOK. The Community's Project Aid in Asia

DETERMINANTS OF ACCESS TO SOCIAL ASSISTANCE PROGRAMMES IN INDONESIA: EMPIRICAL EVIDENCE FROM THE INDONESIAN FAMILY LIFE SURVEY EAST 2012

Results from a social protection technical assistance program. July 2011

Social security inequality among elderly Chinese persons

Combating Poverty and Inequality: What role for social protection?

Social Insurance and Protection Schemes for Children (SIPS) Pilot Project

WOMEN PARTICIPATION IN LABOR FORCE: AN ATTEMPT OF POVERTY ALLEVIATION

Universal Social Protection

Providing Social Protection and Livelihood Support During Post Earthquake Recovery 1

CONTENTS CHAPTER 1 INTRODUCTION

Myths, misnomers, misrepresentations: Unpicking the targeting versus universal debate

Identifying Demand for Improved Cookstoves (ICS) in West Timor

Overview of the Social Transfers Policy Framework. NAP 2 Pillars Key features of the HSCT Who are the stakeholders? How will it be implemented?

Transcription:

1 SOCIAL PROTECTION PROGRAMS IN INDONESIA: Accuracy, Leakages, and Alternative Criteria of Poverty By: 1. Sutiyo, Ph.D (IPDN) 2. Jona Bungaran Sinaga, SSTP, M.Si (IPDN) Presented in the International Conference on Public Administration (ICONPO) VII held in 22-23 August 2017, Sumedang, West Java, Indonesia

Outlines of Presentation 2 I. Introduction II. Literature Reviews III. Methods IV. Socio Economic Condition of Study Sites V. Programs found in Study Sites VI. Accuracy and Leakage of Distribution VII. Alternative Criteria of Beneficiaries VIII.Conclusion IX. References

I. Introduction 3 To alleviate poverty, the government of Indonesia has since 2000 implemented Social Protection Programs, which constitute transfers in kinds or cash to the targeted households. Many studies present that the implementation of the programs is still dealing with two main issues, which are whether all of the poor are officially listed, and whether the listed beneficiaries receive the full benefits (Cook & Pincus, 2014; Gabel, 2014; Ramesh, 2014; Widjaja, Simanjuntak, Asher, Oum, & Parulian, 2010). Considerable improvements are needed to create program effectiveness. This study aims to contribute to discussion, foremost by measuring the accuracy and leakage of distribution and by proposing alternative criteria of beneficiaries to improve program implementation.

II. Literature Reviews 4 Social protection is integrated programs to protect the poor against social and economic risks (Gabel, 2014). The programs are implemented every where, like Bolsa Escola (school grant) in Brazil, and the PhilHealth Poor Sponsored Program and Food for School Program in Philippine. In Indonesia, various programs are found like Raskin, Jamkesmas, Bantuan Langsung Tunai, and so on. Skoufias, Lindert, and Shapiro (2010), analyzing 56 social transfer programs in Latin America and Caribbean, find that appropriate establishment of beneficiary criteria can increase targeting effectiveness. Their study finds the needs to combine geographic targeting and individual assessment in program distribution. Access to information and transparency in beneficiary selection are also important in increasing targeting efficiency (Jha, Shankar, & Gaiha, 2011).

III. Methods 5 The study is conducted in Purbalingga District of Central Java Province. 18 villages within the district are selected based on geographical condition. The population consists of 100.281 households registered in the Database of Social Protection Program, which are accessed from the District Planning Agency. Totally 648 households, or 36 households per village, are randomly selected to be the respondent.

6 Snapshots of Study sites

7

IV. Socioeconomic Condition Study 8 Sites and Respondents No Socio Economic Condition of Resposndent Number Percentage Gender of HH Head 1 Male 577 89% Female 71 11% Education of HH Head Having no formal education 274 42% 2 Elementary school 335 52% Junior High School 35 5% Senior High School 4 1% Occupation of HH Head Agriculture 250 39% 3 Labour 203 31% Business 52 8% Service 24 4% Other 95 15% 4 Number of HH with physical disabilities 31 5% 5 Number of HH with chronic illness 102 16% 6 Number of HH with pregnant 18 3% 7 Number of HH with child under five 164 25% 8 Number of HH with child in school age (6-18 Years) 328 51%

9 Some important notes Informal economies like farmer, small trading and laborer were the main occupation. In informal economy, insecurity is the biggest challenge, meaning that they feel that they are eligible to any social protection programs. Most farmer had less than 0.5 Ha of cropland. Scarcity of cropland exists, meaning that Landholding size is traditionally the symbol of wealth Electricity covers nearly all households, and ownership of handphone and motorbike has been very common, meaning that they cannot be used to differentiate the poor from community.

V. Programs Found in Study Sites 10 Subsidized Rice Program (Raskin) that distributes 15 kg of subsidized rice per month; Health Insurance (BPJS Gakin) that distributes a card for free medication in government facilities; Conditional Cash Transfer Program (Program Keluarga Harapan) that distributes cash for poor household with pregnant and pupils, and; Unconditional Cash Transfer Program (Bantuan Langsung Tunai) that distributes cash to the poor to maintain their purchasing power after the withdrawal of price subsidies.

11

Criteria Used to select the beneficiaries 12 Size of House is less than 8 m2 per capita Dirt floor bamboo or wooden wall of house Roof from palm leaf Having no latrine Having no access to electricity Having no access to clean water Using firewood as cooking fuel

VI. Accuracy and Leakage of Distribution 13 Accuracy is defined as a condition in which the people in the official beneficiary lists receive the program benefits. The accuracy of social protection programs was 97% in Subsidized Rice Program, 86% in Health Insurance Program, 75% in Unconditional Cash Transfer, and 51% in in Conditional Cash Transfer. Subsidized Rice Program suffered from the biggest leakage, in which a half of the stated benefits were not received by the beneficiaries, while Unconditional Cash Transfer lost 7% of the stated benefits

VII. Alternative Criteria of Poverty 14 The existing criteria deemed not work and unsuitable to local condition: Type of roof, because most houses in rural areas similarly had plain roof; Access to electricity, because the coverage of electricity in Indonesia, especially Java, had been nearly 100%; Access to clean water, because most houses in the study sites similarly used public water pump; Cooking fuel, because difficult to observe

15 New proposed criteria of beneficiaries deemed suitable to local condition Type of floor, because there was usually clear differentiation, in which the poor had dirt floor while the non poor had tile; Type of wall, because there was usually clear differentiation, in which the poor had bamboo or wood while the non poor had cemented brick; Health condition of households member, because the poor usually had member with physical disabilities and chronic illness; Size of landholding, because there was usually clear differentiation of landholding between the poor and the non-poor. Newly proposed criteria to filter the non poor becomes the program beneficiaries Ownership of car, because only the rich were able to buy car; Ownership of Cow or Buffalo, because the poor will not able to buy and breed them; Occupation as civil service, army or police, because they provide proper wage, insurance and pension scheme. These jobs were deemed to better equipped to cope with risks and economic uncertainties.

VIII. Conclusion and Policy Implication 16 The existing method to distribute social protection programs may work, but not always accurate. There is still inaccuracy and leakage in program distribution, which ranges from 3% in Subsidized Rice to 49% in Conditional Cash Transfer. In addition to the existing literatures, findings from this study identify another problem that lead to inaccuracy and leakage of social protection programs, which is unsuitable criteria of poverty

17 Revision of criteria of poverty/programs beneficiary is needed. It is argued here 2 factors should be considered in revising the criteria: 1. First, local social and economic condition varies across regions, meaning that the definition and criteria of poverty are not homogen across the countries. 2. Secondly, within the government low capacity to conduct enumeration and manage the data of poor people, involvement of local officers and community is needed.

References 18 Akerkar, S., Joshi, P. C., & Fordham, M. (2016). Cultures of Entitlement and Social Protection: Evidence from Flood Prone Bahraich, Uttar Pradesh, India. World Development, 86, 46-58. Cook, S., & Pincus, J. (2014). Poverty, Inequality and Social Protection in Southeast Asia: An Introduction. Journal of Southeast Asian Economies, 31(1), 1-17. doi: 10.1355/ae31-1a Gabel, S. G. (2014). Social protection and children's rights in developing countries. Journal of International and Comparative Social Policy, 20(3), 199-216. Jha, R., Shankar, S., & Gaiha, R. (2011). Information, access and targeting: The National Rural Employment Guarantee Scheme in India. Oxford Development Studies, 39(1), 69-95. Ramesh, M. (2014). Social Protection in Indonesia and the Philippines: Work in Progress. Journal of Southeast Asian Economies, 31(1), 40-56. Skoufias, E., Lindert, K., & Shapiro, J. (2010). Globalization and the Role of Public Transfers in Redistributing Income in Latin America and the Caribbean. World Development, 38(6), 895-907. Sparrow, R., Suryahadi, A., & Widyanti, W. (2013). Social health insurance for the poor: Targeting and impact of Indonesia's Askeskin programme. Social science & medicine, 96(264-271). Sumarto, S. (2012). Reducing leakages: Key lessons and challenges from policy-making in Indonesia. Paper presented at the Impact and Policy Conference: Evidence in Governance, Financial Inclusion and Entrepreneurship, Jakarta. Suryahadi, A. (2017). Forgotten People: Poverty, Risk and Social Security in Indonesia: The Case of the Madurese. Pacific Affairs, 90(1), 202-204. Sutiyo, & Maharjan, K. L. (2011). Rural Poverty Alleviation in Indonesia: Programs and the Implementation Gap. Journal of International Development and Cooperation, 18(1), 13-22. Widjaja, M., Simanjuntak, R. A., Asher, M. G., Oum, S., & Parulian, F. (2010). Social Protection in Indonesia: How Far Have We Reached. In M. G. Asher, S. Oum & F. Parulian (Eds.), Social Protection in East Asia-Current State and Challenges (Vol. ERIA Research Project Report pp. 157-181): ERIA