Indonesia considers distributing free smartphones to social aid recipients

The Indonesian government is evaluating a proposal to distribute free smartphones to social assistance beneficiaries to facilitate digital transformation and financial inclusion. Social Affairs Minister Saifullah Yusuf stated that the initiative aims to ensure recipients can independently access digital government services, particularly those currently lacking communication devices.

The distribution would likely be data-driven, prioritizing individuals based on assessments of their device ownership. This move supports a broader shift from cash-based social assistance to digital systems, such as the Family Hope Program (PKH) and Non-Cash Food Assistance (BPNT).

Coordinating Minister for Economic Affairs Deputy Dradjad Hari Wibowo noted that while the budget for mass bank account openings for citizens aged 17 and older is being prepared for 2026, the specific budget for free mobile phones is still under discussion. The government aims to prioritize approximately 25.1 million people from economic deciles 1 through 4 to ensure they can connect to digital accounts for direct social aid transfers.