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Indonesia 2026 social assistance and financial inclusion

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2026-10-23 14:08 UTC → 2026-10-24 00:51 UTC · added ~~removed~~

By late September 2026, Indonesia’s social assistance spending reached Rp115.8 trillion, representing 71.2 percent of the state budget allocation. This total includes Rp21.8 trillion for the Family Hope Program (PKH), Rp28.2 trillion for the Food Card Program (Kartu Sembako), Rp11.1 trillion for Program Indonesia Pintar (PIP), and Rp14.4 trillion for KIP Kuliah university support. In mid-October 2026, the Ministry of Social Affairs began the phased distribution of the fourth stage of social assistance for the October–December period. This stage includes PKH and Bantuan Pangan Non Tunai (BPNT), with funds disbursed through Himbara state-owned banks, PT Pos Indonesia, and Kartu Keluarga Sejahtera (KKS) accounts. For BPNT, reports indicate a quarterly amount of approximately Rp600,000. Beneficiaries must be registered in the Integrated Social Welfare Data (DTKS). To support digital transformation, the government is evaluating a proposal to distribute free smartphones to approximately 25.1 million people in economic deciles 1 through 4. Social Affairs Minister Saifullah Yusuf stated the initiative aims to ensure recipients can independently access digital government services, facilitating a shift from cash-based aid to digital systems. On October 22, 2026, the government allocated Rp1.28 trillion from the state budget to implement the ‘One Person One Account’ program. Coordinating Minister for Economic Affairs Airlangga Hartarto stated the initiative aims to increase financial inclusion from 93 percent to 99 percent. Targeting approximately 25 million citizens aged 17 and older in economic deciles 1 to 4, the program will provide an initial deposit of Rp50,000 for each new account. Bank Rakyat Indonesia (BRI) and Bank Syariah will manage the data, utilizing information from the National Socio-Economic Single Data (DTSEN).

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