Indonesia decile system errors impact social assistance eligibility

Discrepancies in Indonesia’s decile-based economic grouping system are causing significant issues for vulnerable populations. Errors in the National Socio-Economic Single Data (DTSEN) have led to the wrongful cancellation of essential social safety nets, including BPJS healthcare, the Kartu Indonesia Pintar (KIP) education program, and various social assistance (bansos) packages.

Economists, including Yusuf Rendy Manilet from the Center of Reform on Economics (CORE), argue that the current model relies on the Proxy Means Test method, which estimates relative socio-economic rankings rather than recording actual household income or expenditures. This method can lead to inaccuracies; for example, a family’s decile may rise simply because the purchasing power of others has declined, or they may remain in a higher decile due to immovable assets like inherited homes despite losing their livelihoods.

Reports indicate that these data inaccuracies result in aid being misdirected, with some wealthy individuals recorded in low deciles while impoverished citizens are moved to higher deciles, disqualifying them from aid. Experts suggest that the decile system should serve as an initial screening tool rather than a final verdict on a household's economic status to prevent the loss of vital social protections.