179 the sub-district or village level, and local
governments are responsible for distributing the rice to the local distribution points for collection
by members of the target households.
Raskin is for poor households. Until 2005, identification of the programme
beneficiariesrelied on the data on ‘Pre- Prosperous Families’ and ‘Prosperous Families
1’
KeluargaPrasejahtera;KeluargaSejahtera1 from the National Family Planning Coordination
Board BKKBN. Since 2006, determining the target households has been based on BPS –
Statistics Indonesia data identifying the ‘very poor’, ‘poor’ and ‘nearly poor’ households as
beneficiaries. The number of Raskin targeted households increased up to2008 and declined
in 2009, corresponding to the number of poor households in Indonesia. Meanwhile, the Raskin
budget continued to increase in accordance with the increase in the price of rice Table 6.2.
6.2.2 Unconditional or direct cash transfers
This programme, known as BLT, was first initiated in October 2005 for 12 months to
alleviate the impact on poor households of an increase in fuel prices BLT 20052006. The BLT
programme aimed to help the poor continue to meet their basic needs in the face of the fuel
price increase, thus preventing a welfare crisis. The GoI has implemented a BLT programme on
three occasions. The next instance was BLT 2008, implemented over seven months, from June to
December 2008. Finally, during BLT 2009, cash was only disbursed for two months in January
and February 2009, again to reduce the impact of rising fuel prices.
The target households for BLT were ‘poor’ and ‘nearly poor’ households, based on data
Table 6.2: Rice for Poor Households; numbers of households, rice ceiling and budgets, 2005–2010
Information 2005
2006 2007
2009 2010
2008
Source:NationalFoodLogisticsAgencyBULOG,2007–2010;CoordinatingMinistryforPeople’sWelfare,2007–2010 Poor households
Target households Recipient households
Rice ceiling tons Budget IDR trillion
15,791,884 8,300,000
11,109,274 1,991,897
4.97 19,100,905
15,800,000 16,736,411
1,736,007 6.47
18,497,302 18,497,302
3,329,514 12.98
15,503,295 10,830,000
13,882,731 1,624,500
5.32 19,100,905
19,100,000 19,131,185
3,342,500 11.66
17,484,009 17,484,007
2,972,945 12.62
from BPS – Statistics Indonesia. The number of target households decreased slightly from 19.1
million in BLT 2005 to 19.02 million in BLT 2008, and to 18.5 million in BLT 2009. The reduction
occurred because some previous beneficiaries had passed away, changed address or improved
their welfare status, while the number of new beneficiaries was lower. Through BLT
programmes, each targeted household received IDR100,000 per month every two to four months
through the post office. In accordance with the implementation period and the number of
target households, the budget allocation for BLT decreased. The budget allocations for BLT 2005
four periods of disbursement, BLT 2008 two periods of disbursement, and 2009 one period
of disbursement were IDR23 trillion, IDR14.1 trillion and IDR3.7 trillion, respectively.
The BLT programme was implemented with cross-sectoral coordination at all levels of
government, working cooperatively based on the main functions and duties of the respective
institutions. At the central level, the agency responsible for the programme was the
Ministry of Social Affairs, which appointed PT Pos Indonesia the national postal service
and Bank Rakyat Indonesia to undertake the task of disbursing funds to target households.
Meanwhile, BPS – Statistics Indonesia was responsible for providing the necessary data.
6.2.3 Conditional cash transfers
Known as PKH, the Family Hope Programme is a conditional cash transfer programme that was
started in 2007. The programme is designed to support increased demand for education and
health services in poor households, assisting the children to escape the inter-generational poverty
180 trap. The PKH’s implementation involves various
agencies including the Coordinating Ministry for People’s Welfare, the Ministry of Social Affairs,
the National Development Planning Agency BAPPENAS, the Ministry of Education, the
Ministry of Health and local governments. The PKH also involves the national postal service in
distribution of the funds to targeted households.
The target of the PKH is ‘very poor households’ known as RTSM
5
with one of the following criteria: children aged 0–6 years, children of
primary or junior secondary school age, children under 18 years old who have not yet completed
the nine years of compulsory schooling, and pregnant or lactating women. The PKH provides
assistance in the form of cash, ranging from IDR600,000–2,200,000 per targeted household
per year, with the amount depending on the composition of the household. Funds are
received three times a year through the post office. Households in receipt of PKH funds
must then meet certain requirements, namely sending children aged 7–18 years to school to
achieve at least the compulsory nine years of schooling, taking children aged 0–6 years to
health facilities, and the examination of pregnant and post-natal women and babies at health-care
facilities. If RTSM participants do not meet these requirements, the amount of the transfer will
gradually be reduced or even terminated.
In 2007 the PKH was piloted in seven provinces, including West Sumatra, Jakarta, West Java,
East Java, North Sulawesi, Gorontalo and East Nusa Tenggara NTT, covering a total of
49 districts and 348 sub-districts. In 2008 the programme expanded to cover 13 provinces
by including Aceh, North Sumatra, Yogyakarta, Banten, West Nusa Tenggara NTB and South
Kalimantan. In 2010 the PKH programme was extended to include 20 provinces, 90 districts
and around 800,000 households. Coverage will be increased gradually until 2013, with a target
of2 million RTSM, after which the numbers will be decreased due to the anticipated improved
welfare of the beneficiaries. In accordance with the increasing number of beneficiaries,
the PKH budget allocation will be increased toIDR3.17trillion in 2013 and then reduced until
the programme’s planned completion in 2018 see Table 6.3.
6.2.4 Overall programme performance
The coverage of target households for the three poverty reduction programmes –Raskin, PKH
and BLT – increased from year to year see Table 6.4. Raskin targets until 2007 only covered a
proportion of poor households, however, since 2008 the programme aimed to reach all poor
households. In terms of realization, the number of recipient households has always exceeded
the number of target beneficiary households because non-targeted households also receive
the subsidy.
Since its initial implementation, the BLT programme has always targeted the total
number of poor households, based on the collection and updating of data on poor
households. For the same reason, the number of households receiving BLT was almost
equal to the number of target households and the number of poor households. There were
slight variations between the number of poor households, targeted households, and recipient
households due to the lag in availability of updated data.
Unlike the BLT and Raskin programmes that cover all regions in Indonesia, to date the
conditional cash transfers, PKH, only cover 10 of Indonesia’s 33 provinces. The program’s
coverage will be improved gradually each year. A different set of households were also
targeted or this programme. Raskin and BLT cover all categories of poor households very
poor, poor and near poor whereas PKH only covers very poor households. Therefore, the
number of households receiving the PKH is very small compared to the overall number of poor
households. In fact, because the programme does not cover even a third of Indonesia’s
provinces and because there are specific eligibility criteria and conditions for the PKH as
5 Very poor households were identified through proxy means testing conducted by BPS – Statistics Indonesia
181
Table 6.3: Targeted households for conditional cash transfer programme PKH, 2010–2018
Year 2007
2011 2015
2009 2013
2017 2008
2012 2016
2010 2014
2018
Source:MinistryofSocialAffairs,ProgramKeluargaHarapanPKH,www.pkh.depsos.go.id,accessed15December2010 1
2 3
4 5
6 7
Total Budget
IDR trillion
392,000
392,000 1
392,000 224,000
120,000
736,000 1.1
392,000 224,000
120,000 90,000
500,000 1,326,000
2 392,000
224,000
616,000 1.1
392,000 224,000
120,000 90,000
826,000 1.3
392,000 224,000
120,000 90,000
500,000 500,000
1,826,000 2.79
Exit 224,000
120,000 90,000
500,000 500,000
600,000 2,034,000
3.17 Exit
Exit Exit
90,000 500,000
500,000 600,000
1,690,000 2.68
Exit Exit
Exit Exit
Exit 500,000
600,000 1,100,000
1.74 Exit
Exit 120,000
90,000 500,000
500,000 600,000
1,810,000 2.82
Exit Exit
Exit Exit
500,000 500,000
600,000 1,600,000
2.53 Exit
Exit Exit
Exit Exit
Exit 600,000
600,000 0.95
described in section 6.2.3, compared to the total number of very poor households or RTSM, only
a small percentage have benefited from the PKH programme. However, the program cover rate
has increased over time Table 6.4.
The number of households receiving assistance from these programmes does not automatically
indicate the intended scope of the programme for poor households due to inaccuracies in
Table 6.4: Number of poor households and number of target and recipient households for Rice for Poor Households Raskin, unconditional and conditional cash transfers BLT and PKH, 2005–2010
2005 2006
2007 2009
2010 2008
Source:BAPPENAS,2010;BULOG,2007–2010;BPS–StatisticsIndonesia,2010 Notes:•Figuresinpercentageofpoorhouseholds;inpercentageofverypoorhouseholdsRTSM
•Cellshaded=programmenotyetnotimplemented
•TheirstBLTlasted12months20052006;fortheirstphase2005datafromPSESocialEconomicRegistration2005
wereused,whileforthenextphase2006theupdatewasbasedondataforpoorhouseholdsin2006and2007
includesverypoor,poorandnearpoor Target
Recipient Target
Recipient Target
Recipient Raskin
PKH
BLT
Poor households
8,300,000 52.56
11,109,274 70.35
15,503,295 100.00
na
15,791,884 15,800,000
82.72 16,736,411
87.62 392,000
2.05 10.07
388,000 2.03
9.96
19,100,905 18,497,302
100.00 na
726,000 3.98
na 720,000
3.89 na
18,832,053 101.81
18,497,302 100.00
18,497,302 10,830,000
69.86 13,882,731
89.55
19,100,905 100.00
na
15,503,295 19,100,000
100.00 19,131,185
100.16 626,000
3.22 15.82
700,000 3.66
17.97 19,020,763
99.58 18,768,777
98.26
19,100,905 17,484,007
100.00 na
816,000 4.72
27.60 816,000
4.67 27.27
17,484,009
targeting. Of the three programmes, the Raskin programme was the one that received the most
criticism for mis-targeting beneficiaries. Several studies, by the SMERU Research Institute and
others, have shown that the Raskin programme mis-targeted beneficiaries because targets
tended to be spread evenly among households at all levels of wealth. This can be seen by
analyzing Raskin recipients based on SUSENAS data allowing for categorization of households
