Indonesia prepares digital aid network for 50 million citizens

 The Indonesian government will launch a digital social protection system covering 50 million low-income citizens in October 2026, aiming to eliminate misallocated aid and curb corruption.

Luhut Binsar Pandjaitan, chair of the National Economic Council (DEN) and the Government Digital Transformation Acceleration Committee, announced Thursday that the initiative will roll out in the third week of October under President Prabowo Subianto's direction.

The digital framework aims to rectify systemic errors in beneficiary data collection, which Pandjaitan noted have frequently excluded eligible citizens from social assistance lists.

"The 50 million poorest citizens will certainly be included," Pandjaitan said, adding that up to 50 percent of social aid distribution in previous years had missed its intended targets.

The platform has been in development for approximately one year, following an initial pilot project in Banyuwangi District, East Java.

Data collection for the digital social protection network has expanded to 215 districts and cities across the country.

Once the registry is finalized, the system will link directly to recipients' bank accounts. Pandjaitan targeted the initial trial of direct bank transfers to commence in the first quarter of 2027.

In addition to direct transfers, the government is reviewing alternative disbursement mechanisms, such as non-cash vouchers, to prevent the misuse of public funds for non-essential activities like online gambling.

"We are considering whether to issue vouchers instead of cash so funds could only be used for essentials like electricity, rice, and fuel," Pandjaitan explained.

He added that transitioning to automated digital mechanisms will foster market transparency, reduce direct human contact, and minimize corruption risks in public aid distribution.