Presentation on theme: "Social Protection in Indonesia"— Presentation transcript:
1 Social Protection in Indonesia Ester Fitrinika HWDirectorate of Social Protection and WelfareNational Development Planning Agency – Republic of IndonesiaSeminar on “Social transfer in the fight against hunger”Pnom Penh-Cambodia, 21-23th of February, 2013
2 - Area : km2 (no.6 biggest country after Canada, USA China, Brazil, Australia) island. - Population : 240 million (no.4 highest population after China, India, USA)
3 BACKGROUND OF SOCIAL PROTECTION IN INDONESIA 1. Economic shock in 2005/6 due to the oil price hiked made the gov’t had to shift from commodity subsidy to household subsidy.Indonesia have a significant number of the poor, thus commodity subsidy is unfair for the poorTargeted household subsidy (Unconditional Cash Transfer (UCT) then transformed to CCT in 2007, Health insurance, Scholarship, and Rice for the Poor) as an embryo to Social Protection2. Due to internal political pressure, Indonesia have to prolong fuel price subsidy to maintain its low price domestically. As a result:Price difference between domestic price and international price.Big burden and uncertainty in government budget.
4 Dimension of Poverty in Indonesia Three characteristics of povertyA significant number of vulnerableNon-monetary PovertyInterregional disparityAccess inequality in health, nutrition, education, water & sanitation, etc., especially for the poor in remote and isolated areasPoverty rate across regions, 2009
6 Rural-Urban Disparity Poverty Rates in Rural and Urban AreasGini ratios in urban and rural areasSource: BPS, Susenas 2011
7 CURRENT SOCIAL PROTECTION SCHEME MACRO ECONOMIC POLICYSocialInsurancePension.Old Age Security.Health.Work Injury.Death.Social AssistanceCreditFacility toSMEsCluster 3National Programon CommunityEmpowerment(PNPM):Urban, rural, ruralinfrastructure,less-dev’d regionsPNPM Generation(+Nutrition)Cluster 2Scholarship for the poorSupplemental food forSchool Children ProgramSubsidized RiceCCT & CCT-Nutrition(for the poorest)UCTDisabledChildren with adversityNeglected old agesIndigenous communitiesCluster 1Poverty targeting beneficiaries by unified database – 2011, with validation, verifikation, community poverty mapping.
8 Spending Priority of State Budget 20052006200720082009201020112012Transfer to region26.6332.3633.6729.5530.8430.6131.1433.18Subsidy21.3815.3619.9627.8213.8017.1122.3719.03Education13.8917.5918.9015.5820.8120.0020.2120.20Poverty Programs4.146.677.066.128.007.237.106.91Health2.263.223.262.472.782.813.323.34Agriculture2.512.592.984.154.334.133.823.76Infrastructure4.627.727.959.128.839.5111.25Total Spending100.00Source: LKPP audited, except 2011 (unaudited) and 2012 (APBN-P)
9 Malnutrition in Indonesia Angka stunting di Indonesia 37%,peringkat ke 5 di dunia. Try to achieve 32% in 2014 (end of Mid Term Development Plan National)Will achieve 32% stunting in 2014 (end of MTDP)
10 Social protection related to food and nutrition: Supplemental food for School Children Program (1997, 2010):- to contribute to acceleration of achievement of nationaldevelopment goals related to: overcoming malnutrition(the incidence of stunting in children aged 6-14 years was13.3 % for boys and 10.9 % for girls) – universalSubsidized Rice (foor the poor):- Subsidy to rice price for very poor h.h- Deliver by local government (using the data from CentralStatistic Agencey)
11 CCT (2007) & CCT-Nutrition (for the poorest, start 2013): - CCT: for pregnat mother and children up to 18 years (junior high school) to access health and education – #20- Nutrition intervention for pregnant women up to 2 yearsold children to reduce stunting. Pilot project in 2 prov.- in 2007 using data frm Central Statistic Agency, starting2012 using “unified data base”UCT (Unconditional Cash Transfer)aimed to reach one-third of Indonesian households to provide some compensation for the reduction in the fuel subsidy at a time of rapid fuel and food – particularly rice – price inflation. Cash was disbursed in several rounds in and again in 30 $/month.PNPM Generation (CCT with nutrition program through community empowerment)CCT benefit scenario: slide 17.
12 Malnutrition in Indonesia Angka stunting di Indonesia 37%,peringkat ke 5 di dunia. Jumlah anak balita stunting di Indonesia 7,688,000. Terbesar jumlah stunting di Indonesia Bagian Timur (NTT dan NTB), tetapi juga di Jawa (lebih dari 35 % di Jawa Timur dan Jawa Tengah)Will achieve 32% stunting in 2014 (end of MTDP)
13 THE WAY FORWARD (PLANNED) 2012 – 2014:Accelleration of poverty reduction strategy.:Transformation of poverty reduction program:Consolidate poverty alleviation programs (social assistance) complementary, well targetingStrengthening social insurance program.“Master Plan of Poverty Reduction Acceleration in Indonesia” as complementary of “Master Plan of Economic Development in Indonesia”.
14 Pengurangan Angka Kemiskinan Cluster-4PROGRAM RUMAH SANGAT MURAHPROGRAM KENDARAAN ANGKUTAN UMUM MURAHPROGRAM AIR BERSIH UNTUK RAKYATPROGRAM LISTRIK MURAH & HEMATProgram Peningkatan Kehidupan Nelayan *)Program Peningkatan Kehidupan Masyarakat Miskin Perkotaan *)Peningkatan Kesejahteraan Masyarakat, serta Perluasan dan Peningkatan Kesempatan KerjaPengurangan Angka KemiskinanRTSM *)RTM *)RTHMRTSMRTMCluster-1BEASISWA MISKINJAMKESMASRASKINPKHBLT (bila diperlukan saat krisis)Dll.Cluster-2PROGRAM-PROGRAM PEMBERDAYAAN MASYARAKAT(PNPM)Cluster-3UMKM,KREDITUSAHA RAKYAT(KUR)MACRO ECONOMIC POLICY
15 MP3EI MP3KI Increase economic growth, inclusiveness & equity CSR or NGOsLocal Gov’tSynergi of cluster 1, 2, 3, & 4Access toConectivity ArecIncrease economic growth, inclusiveness & equityReduce the poverty levelIncreasing job creationEqual economic dev’t in the whole country
18 PKH (Family Hope Program) Indonesia’s CCT Objective:Contribute to the acceleration of MDGsBreak the circle of poverty chain for future generationReduce child and maternal mortality Indonesia is among the highest in SE Asia.Improve education attainment of poorImprove the quality of human resources through improvement in access to health and education services for the poor
19 PKH DESIGNELIGIBILITY. CCT to the poorest households (based on PMT targeting) which have expecting or lactating mothers and children between years old.TIMELINE. PKH will be conducted from 2007 to 2020: Original design assumed beneficiaries remain in the system for a max of 6 years.SPATIAL EXPANSION. Through phased expansion now reaches 25 of the 33 provinces.COVERAGE AND BUDGET. Total number of beneficiaries 2011 estimated at 1.1 million HHs at a cost of $177,7 million; and for 2014 will target 3.0 million HHs at a cost of US$466,6 million.BENEFIT. Benefit ranges from a flat benefit of US$60 (min) to max of US$220 per household per year.
20 Conditionalities HEALTH EDUCATION The mother or the adult woman responsible for taking care the children in the family receives cash if:She goes to a nearby health facility for pre and post natal check-ups; and orChildren under 5 years old receives regular immunization and check-ups.EDUCATIONThe mother or the adult woman responsible for taking care the children in the family receives cash if:Their school year old children are enrolled in a school for basic education, andTheir children attend the school with minimum 85% attendance.
21 Annual Benefit per Poor HH BENEFIT SCENARIOBenefit ScenarioAnnual Benefit per Poor HHFixed Benefit$ 20Additional Benefit for Poor HH who has:Children under 6 years oldPregnant/lactating motherChildren in elementary school ageChildren in junior secondary school age$ 80$ 40Average benefit per poor HH$ 140Minimum benefit per poor HH$ 60Maximum benefit per poor HH$ 220Notes:Average benefit is calculated based on 16% of total annual income of poor HH.The range for minimum and maximum benefit is between 15-25% average annual income of poor HH.Benefit scenario will be evaluated periodically.
22 Trend of PKH Budget 1. National Budget 20072008200920102011201220132014Target (HH)BudgetRp 843 B(US$ 93,7 M)Rp 1 T(US$111,1 M)Rp 1.1 T122,2 M)Rp 1,3 T144,4 M)Rp 1,6 T177,7 M)Rp 1,8 T200 M)Rp 2,8 T311,1M)Rp 4,2 T466,6 M)*) 1 USD = ~Rp9.0002. International support Technical Assistance/GrantWorld Bank: Project preparation and evaluationsGIZ (Germany) & AusAID: Technical expertise on management improvementUNICEF: additional intervention for stunting (pilot phase)
23 PKH Future PlanAchieve the coverage for all poorest families in accordance to target of the National Mid Term Development Plan (RPJMN)Preparing “Exit Strategy” to guarantee the “graduate beneficiaries” to have a fundamental transformation of livelihoodsRe-certification to measure the progress of socio-economic condition of beneficiariesTransition and graduation schemes to link beneficiearies to other related social protection programs (i.e: scholarship, health insurance, rice subsidy, livelihood, etc).Strengthen cross sectoral coordination related to local government particularly in improving supply side.Improving level of benefit and other incentives such as ‘bonus of transition’ for children of school level 6 to 9 to reduce school drop out and child labor.Continue to improve program implementation: enhancing facilitator’s quality, and synchronising benefit payment with school intake.Improve the quality of database and monev instruments (MIS, households survey).
28 Social Assistance Expenditure Categories2011 Annual Expenditure (IDR)%Assistance for Elderly0,37%Health Assistance (Jamkesmas)18,85%Child Protection1,06%Disaster Assistance and Relief1,59%Other Social Assistance (disability, old age benefits)1,33%Rice for the Poor (Raskin)56,43%Scholarship for the Poor14,42%CONDITIONAL CASH TRANSFER/CCT (PKH)5,95%All Social Assistance,0100,00%Share to State Budget (APBN)2,05%Share to GDP