Indonesia plans free mobile phones to digitize social aid

The Indonesian government plans to distribute free mobile phones and digital bank accounts to approximately 30 percent of the population that remains unbanked. Hashim Djojohadikusumo, Special Envoy to the President for Climate and Energy, announced that this initiative aims to transition social assistance (bansos) from cash to a fully digital system.

By providing smartphones equipped with digital accounts, the government intends to ensure that aid is transferred directly to recipients, increasing transparency and minimizing the risk of illegal deductions. To facilitate this, the government has tasked Bank Syariah Indonesia (BSI) and Bank Rakyat Indonesia (BRI) with opening these accounts. Additionally, the government will waive the standard Rp50,000 account opening fee to encourage financial inclusion and help transition the economy from cash-based to digital transactions.