Gegara Juliari Case, DKI Changed Social Assistance To BLT But Less Receivers

Illustrations (Irfan Meidianto / VOI)

JAKARTA - Starting early next year, DKI residents whose economic conditions are affected by COVID-19 will no longer receive social assistance in the form of basic necessities. They will receive direct cash assistance (BLT).

The DKI Provincial Government and the Coordinating Minister for Cultural Human Development (PMK) Muhadjir Effendy as the Minister of Social Affairs ad interim agreed to change the social assistance scheme for Jakarta residents.

"The central government and DKI Pemprov agree that social assistance in 2021 will be in the form of cash social assistance in the form of cash. Later it will be delivered directly to residents who receive assistance," said Deputy Governor of DKI Ahmad Riza Patria at DKI City Hall, Thursday, December 17.

The amount of BLT to affected residents will be Rp. 300 thousand. BLT is given monthly for the next six months, starting in January 2021. The BLT will be deposited through Bank DKI and PT Pos.

According to Riza, it is hoped that the provision of cash assistance will support the needs of the community by spending at local stalls. So, it can move the economic conditions of other residents.

In addition, the provision of BLT, according to Riza, also provides assurance that assistance for residents affected by COVID-19 does not experience a reduction in rights. Given, there is a crisis of trust from residents due to the social assistance corruption case by the inactive Minister of Social Affairs Juliari.

This case stems from the procurement of social assistance for handling COVID-19 in the form of food packages at the Ministry of Social Affairs in 2020 with a value of around Rp.5.9 trillion with a total of 272 procurement contracts and carried out in two periods.

Juliari and two of his subordinates are suspected of receiving bribes worth around IDR 17 billion from Ardian and Harry as partners of the Ministry of Social Affairs in procuring COVID-19 social assistance packages for the Jabodetabek area in 2020. The fee received is IDR 10,000 from the value of each COVID-19 social assistance package of IDR 300 thousand.

"It has become a policy after weighing it with various considerations. It is better if cash social assistance is given so that the first time people get their full rights, it does not decrease," he said.

It's just that the number of BLT recipients starting early next year will be reduced because some of the residents' economies are back on track. Currently, the reduction in the number of BLT recipients in the capital is still being reviewed.

"The number of recipients is still being checked again. There is a possibility that the number will decrease because there are already many Jakarta residents who can return to work," said Riza at the City Hall of DKI, Central Jakarta, Thursday, December 17.

Previously, there were 2.45 million families who received basic food assistance, the distribution of which was divided between the central government and the DKI Provincial Government. The BLT distribution also had the same distribution scheme, except that there was a reduction in the number of recipients.

Is BLT social assistance effective?

According to an economic observer at the Institute for Development of Economics and Finance (INDEF), Nailul Huda, social assistance in the form of BLT is indeed more effective for the people who receive it than the provision of goods.

This is because BLT can be immediately identified if someone reduces the amount of aid. "In an era of openness like this, cash assistance will be very minimally misused," Nailul told VOI, Friday, December 18.

From an economic point of view, even this assistance through cash or BLT has a bigger multiplier effect in terms of moving the wheels of the economy at large.

However, there are notes that must be considered in the provision of BLT, the Government must ensure that the data on social assistance recipients is valid. In that sense, BLT is aimed at residents who really need and benefit.

"At least, if you buy for daily needs, the money will circulate in the community. For example, buying clothes, then the money will be used to buy materials, employees and others. So the circulation of money is getting faster and can improve the economy in the community," he explained.