Social assistance IDR 47 Trillion Does Not Increase Consumption, Social Minister Risma Must Evaluate

JAKARTA - Executive Director of Indef Tauhid Ahmad said that household consumption of minus 2.23 should be a concern. This is because the social assistance programs which spend a budget of up to IDR 47 trillion have not been able to boost public consumption.

As is known, the Central Statistics Agency (BPS) released data on Indonesia's economic growth in the first quarter of 2021. Indonesia's economy is still experiencing contraction by minus 0.74 percent. The biggest contributor is household consumption 2.23 percent.

"Social protection is a form of stimulus to encourage consumption from an economic point of view, but strangely why doesn't it have a big impact? Even though the percentage has reached the highest percentage of 31.76 percent, (the budget is) IDR 47.92 trillion. Of course, this must be re-evaluated", he said in a virtual discussion, quoted on Thursday, May 6.

According to Tauhid, the evaluation in question is to look again at whether this social assistance program has not made any fundamental changes to the target targets. Moreover, previously the Minister of Social Affairs, Tri Rismaharini, said that she had problems in terms of data on social assistance recipients.

"What we know yesterday by the minister of social affairs has a big problem in the data on target targets whose data has changed", he said.

In addition, said Tauhid, this invalid target data caused social assistance programs to also be distributed to middle and upper-class groups. This aid is also saved not spent.

"So, if she is in the upper-middle group, she is not used for consumption, but others and it is precisely those who need the lower group that the amount is relatively small so it cannot encourage consumption", he explained.

"I think a new way is needed so that the national economic recovery program has a bigger effect on each of the programs", he added.