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Technical Assistance Consultant’s Report

This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design.)

Project Number: 44152 Regional — Capacity Development Technical Assistance (R–CDTA) August 2012

Republic of Indonesia: Updating and Improving the Social Protection Index (Cofinanced by the Republic of Korea e-Asia and Knowledge Partnership Fund)

Prepared by Sri Moertiningsih Adioetomo, Elda Luciana Pardede, and Qisha Quarina

For Asian Development Bank

ABBREVIATIONS AND ACRONYMS

Acronym Indonesian English ADB Asian Development Bank ADL Activity Daily Living AKB Angka Kematian Bayi Infant Mortality Rate AKI Angka Kematian Ibu Maternal Mortality Rate ANC Ante Natal Care APBN Anggaran Pendapatan dan Belanja

Negara National Budget

APINDO Asosiasi Pengusaha Indonesia Association of Indonesian Entrepreneurs

ASABRI Asuransi untuk ABRI Insurance for Armed Forces ASKEM Asuransi Kematian Death Insurance ASKES Asuransi Kesehatan Health Insurance ASKESKIN Asuransi Kesehatan Keluarga Miskin Health Insurance for Poor Families ASKESOS Asuransi Kesejahteraan Sosial Social Welfare Insurance BANSOS Bantuan Sosial Social Assistance BAPPENAS Badan Perencanaan dan

Pembangunan Nasional National Development Planning Agency

BKKBN Badan Kependudukan dan Keluarga Berencana Nasional

National Family Planning Coordinating Board

BKM Bantuan Khusus Murid Student Special Assistance BLM Bantuan Langsung Masyarakat Unconditional Cash Transfer BLT Bantuan Langsung Tunai Unconditional Cash Transfer BOMM Bantuan Operasional Manajemen Mutu Quality Management School

Assistances BOS Bantuan Operasional Sekolah Operational School Assistance BPJS Badan Penyelenggara Jaminan Sosial Social Securities Administering Bodies BPS Badan Pusat Statistik Central Bureau of Statistics BULOG Badan Urusan Logistik National Food Logistic Agency BUMN Badan Usaha Milik Negara State Owned Enterprise CCT Conditional Cash Transfer DEPSOS Departemen Sosial Ministry of Social Affairs DIPA Daftar Isian Pelaksanaan Anggaran Checklist of Budget Planning FSP Fiscal Stimulus Program GDP Gross Domestic Product GPJ Global Job Pact GNI Gross National Income HMP Health Maintenance Program HIV/AIDS Human Immunodeficiency

Virus/Acquired Immunodeficiency Syndrome

IDHS Indonesian Demographic and Health Survey

ILO International Labor Organization LEPPM3 Lembaga Ekonomi Pengembangan

Pesisir Mikro Mitra Mina Economic Institution for Coastal Development -Micro MItra Mina

LHK Luar Hubungan Kerja Outside Industrial Relation LKM Lembaga Keuangan Mikro Micro Finance Institutions

JAMKESMAS

Jaminan Kesehatan Nasional Public Health Insurance

JAMPERSAL Jaminan Persalinan Free Birth for All JAMSOSTEK

Jaminan Sosial Tenaga Kerja Social Seurity Program for Employees

JHT Jaminan Hari Tua Old Age Security JK Jaminan Kematian Death Benefit JKK Jaminan Kecelakaan Kerja Employment Accident Benefit JPK Jaminan Pelayana Kesehatan Health Care Benefit JPK GAKIN Jaminan Pemeliharaan Kesehatan

Keluarga Miskin Health Care Benefit for Poor Family

LAKIP Laporan Akuntabilitas Kinerja Instansi Pemerintah

Performance Accountability Report

MA Madrasah Aliyah MDGs Millennium Development Goals MI Madrasah Ibtidayiah MOH Ministry of Health MOSW Ministry of Social Welfare MTs Madrasah Tsanawiyah MMR Maternal Mortality Rate MOA Ministry of Agriculture MONE Ministry of National Education MOOFA Ministry of Ocean and Fisheries Affairs MOSA Ministry of Social Affairs MOU Memorandum of Understanding NGO Non Government Organization NSSS National Social Security System OPK Operasi Pasar Khusus Special Market Operation PBI Penerima Bantuan Iuran Receivers of Contribution Assistance PDMP Pengembangan Desa Mandiri Pangan Development of Food Self-sufficiency

Regions PDRP Penanganan Daerah Rawan Pangan Assistance for Regions with Food

Insecurity PEMDA Pemerintah Daerah Local Government PEMP Pengembangan Ekonomi Masyarakat

Pesisir Social Assistance for Coastal Family

PKBS-BBM Program Kompensasi Pengurangan Subsidi-Bahan Bakar Minyak

Compensation Program due to Fuel Subsidy Reduction

PKH Program Keluarga Harapan Family Hope Program PNC Post Natal Care PODES Statistik Potensi Desa Village Potential Statistics of Indonesia NSSS National Social Security System PNPM Program Nasional Pemberdayaan

Masyarakat National Community Empowerment Program

PP Peraturan Pemerintah Government Regulation PPK Pelaksanaan Pelayanan Kesehatan Health Service Centers PPLS Program Perlindungan Sosial Social Protection Programs PPP Purchasing Power Parity PT Perseroan Terbatas Limited Company

SKTM Surat Keterangan Tidak Mampu-Poor Certificate of Incapability PUSDAKA Pusat Pemberdayaan Keluarga Centre for Family Empowerment RASKIN Beras Miskin Rice for Poor Households RH Reproductive Health RISKESDAS Riset Kesehatan Dasar Basic Health Research RPJMN Rencana Pembangunan Jangka

Menengah Nasional National Medium-Term Development Plan

RSBI Rintisan Sekolah Bertaraf Internasional Pioneering International-Based School RTM Rumah Tangga Miskin Poor Households RTS Rumah Tangga Sasaran Targeted Household Recipients SAKERNAS Survey Angkatan Kerja Nasional National Labor Force Survey SBI Sekolah Bertaraf Internasional International-Standard School SMP Sekolah Menengah Pertama Junior High School SMPT Sekolah Menengah Terbuka Open Secondary Schools SP Social Protection SPDN Solar Packed Dealer untuk Nelayan Gas Station for Fishermen SPI Social Protection Index SUSENAS Survey Sosial dan Ekonomi Nasional National Social and Economics Survey TASPEN Tabungan Pensiun Pension Funds THT Tunjangan Hari Tua Old Age Benefit TKBM Tempat Kegiatan Belajar Mandiri Place of Independent Learning

Activities TP Tugas Perbantuan Assistance Assignment UCT Unconditional Cash Transfer UN United Nations UNFPA United Nations Population Fund

CONTENTS

I.  INTRODUCTION 1 A. Background 1 B.  Definition of Social Protection 1 C.  Report Structure 3 

II.  COUNTRY OVERVIEW 3 A.  Demographic Profile 3 B.  Economy 4 C. Poverty 5 D.  Employment and Labor Force 5 E.  Education 6 F.  Health 7 

III.  CURRENT SOCIAL PROTECTION PROGRAM AND ACTIVITIES 7 A.  Data Collection 7 B.  Social Insurance 10 C.  Social Assistance 14 D.  Labor Market Program 26 

IV.  SOCIAL PROTECTION INDEX AND ITS DISAGGREGATIONS 28 A.  Basic Statistics 29 B.  Social Protection Expenditure 30 C.  Social Protection Beneficiaries 33 

V.  ANALYSIS OF COUNTRY RESULTS 36 A.  Disaggregation by Social Protection Category 36 B.  Disaggregation by “Depth” and “Breadth” 37 C.  Disaggregation by Poverty 37 D.  Disaggregation by Gender 38 

VI.  CONCLUSION AND RECOMMENDATION 39 A.  Structure of the SPI 44 B.  SPI’s Major Disaggregation 44 

I. INTRODUCTION

A. Background

1. Asian Development Bank’s (ADB) development of the social protection index contributed to the strengthening of social protection programs in developing member countries (DMCs). ADB will continue its work on updating and improving the Social Protection Index (SPI). The SPI’s update will address and incorporate lessons learned from two technical assistance projects1 that developed the SPI for 35 countries in Asia and the Pacific and introduce new components and institutional arrangements to sustain the effective use of social protection indicators in policy analysis and formulation in the DMCs. 2. These initiatives will be implemented under the ADB commissioned regional technical assistance project2 that seeks to (i) improve the methodology in defining social protection for each DMC in order to ensure comparability among DMCs; (ii) improve data gathering for statistical analysis on social protection; and (iii) develop capacity of DMCs in monitoring the SPI and allow comparisons between countries and over time on implementation performance. 3. This country study provides updated information and data on social protection arrangements, legislation, and institutions and calculates the SPI for Indonesia in view of the revised SPI methodology. The SPI can be updated periodically to assess progress in social protection arrangements in the country and analyze deeper aspects of targeting, coverage and expenditures on various social protection programs; for example, on the breadth (coverage) of social insurance versus social assistance or labor market programs, or on the depth (size of benefit) of various categories of social protection. The revised SPI methodology also provides scope to measure the gender responsiveness of programs, and poverty targeting of programs.3 4. The primary objective of the Indonesia Country Report is to present the results of the research on social protection programs and policies in Indonesia from all related ministries, particularly the Ministry of Social Welfare; and, summarize quantitative information on these activities to enable the formulation of a national Social Protection Index (SPI). B. Definition of Social Protection

5. Social protection is defined as the set of policies and programs designed to reduce poverty and vulnerability by promoting efficient labor markets, diminishing people’s exposure to risks, and enhancing their capacity to protect themselves against hazards and interruption/loss of income. 6. This definition categorizes all programs under the traditional components of social protection as social insurance, social assistance and labor market programs. Microfinance as a form of social protection is excluded from the calculation of SPI since it does not involve a transfer in cash or kind and beneficiaries incur loans or debt instead of transfers. Thus, by eliminating microfinance from the coverage of social protection programs, three major programs

1 ADB. 2003. Technical Assistance for Social Protection Index for Committed Poverty Reduction. Manila (TA 6120-

REG); ADB. 2006. Technical Assistance for Scaling Up of the Social Protection Index for Committed Poverty Reduction. Manila (TA 6308-REG).

2 ADB. 2010. Technical Assistance for Updating and Improving the Social Protection Index. Manila (TA 7601-REG). 3 To be able to calculate with relative accuracy the poverty-targeting rate of programs, household surveys need to

contain a social protection data. However, the data of the survey was not available at the time of writing this report.

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are left: (i) social insurance (i.e. the categories of old-age insurance, programs for the disabled, and health expenditure on insurance and pensions; (ii) social assistance (i.e. the categories of non-contributory health insurance, conditional cash transfers, child protection, and unconditional cash transfers; and (iii) labor market programs as shown in Table 1.

Table 1: Social Protection Categories and Types of Programs Social Protection Category Type of Program Social Insurance Programs Pensions Unemployment Benefits Health Insurance - but not universal health insurance Other social insurance (maternity, disability benefits) Social Assistance Assistance for the elderly (e.g., non-contributory

basic allowances for the elderly, old-age allowances) Health assistance (e.g., reduced medical fees for

vulnerable groups) Child protection (school feeding, scholarships, fee

waivers, allowances for orphans, street children initiatives)

Family allowances (e.g., in-kind or cash transfers to assist families with young children to meet part of their basic needs) – excluding any transfers through the tax system

Welfare and social services targeted at the sick, the poor, the disabled, and other vulnerable groups

Disaster relief and assistance Cash/in-kind transfer (e.g., food stamps, food aid) Temporary subsidies for utilities and staple foods -

only if imposed in times of crisis and if targeted at particular vulnerable groups. General subsidies are excluded even if their rationale is to assist the poor

Land tax exemptions Labor Market Programs Direct employment generation through public works

programs – including food for work programs Direct employment generation through loan-based

programs – included if loans are subsidized and/or job creation is an explicit objective of the program

Labor exchanges and other employment services – if distinct from social insurance and including retrenchment programs

Unemployment benefits – if distinct from social insurance and including retrenchment programs

Skills development and training – included if targeted at particular groups (e.g., the unemployed or disadvantaged children. General vocational training is excluded).

Source: ADB. 2011. The Revised Social Protection Index: Methodology and Handbook. Manila.

7. Indonesia has no definition of social protection programs. The National Social Security System (NSSS) Law No. 40 of 2004, which mandated a universal coverage of social security, including old-age pension, health insurance, unemployment insurance and death insurance, with compulsory contribution and subsidy for those who cannot afford to pay premium, has not been implemented. This mainly due to institutional problems on the enactment of the

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implementing Board of the National Social System (BPJS) that is supposed to be the carrier of the social security as is stated in the NSSS Law 2004. 8. Before the NSSS 2004 was enacted, four administering bodies of social insurance were established and is currently operating in Indonesia: 1) PT Jamsostek which covers mostly the formal workers with health insurance, occupational injury, old age benefit and death or survivor benefit; 2) PT ASKES, provides health insurance for the government civil servants and the military and their family; 3) PT Taspen providing provident as well as pension schemes for government civil servants; and 4) PT ASABRI covering pensions for the military personnel. Therefore, the coverage is limited to workers in the formal sectors. The majority of workers outside these systems (i.e., mostly the informal workers and their families) remain excluded. These four administering bodies are state-owned companies. 9. The Government recognizes this situation, and while waiting for the actual implementation of the NSSS 2004 law, affirmative actions are developed to expand coverage of those that are excluded from the existing system with social assistance and labor market programs. C. Report Structure

10. The Indonesia Country Report is structured as follows:

• Chapter II contains a brief overview of the social and economic development in Indonesia.

• Chapter III describes current social protection activities and programs in the country using ADB’s typology.

• Chapter IV provides an overview of the derivation of SPI and its disaggregation. • Chapter V presents the analysis of the country results. • Chapter VI discusses policy assessment and implications.

II. COUNTRY OVERVIEW

11. This chapter provides a brief overview of the socio-economic characteristics of Indonesia, main features of the country[s current development situation, and recent trends. 12. Indonesia is located between the Asian and Australian continents and between Atlantic and Pacific oceans. The archipelago consists of 17,508 islands, with 6,000 among them inhabited4. Indonesia enjoys the benefit of having fertile soil for agriculture, flora and fauna. However, Indonesia is located within The Pacific Ring of Fire and is challenged by frequent earthquakes and volcanic eruptions5. A. Demographic Profile

13. The Republic of Indonesia consists of 33 provinces spread over 5 main islands and 4 archipelagos. These provinces consist of districts and cities. According to Central Bureau of Statistics (BPS) in 2010, there were 399 districts and 98 cities. These districts are subdivided

4 http://en.wikipedia.org/wiki/Indonesia (22/9/2011) 5 http://en.wikipedia.org/wiki/Pacific_Ring_of_Fire (22/9/2011)

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into sub districts and further divided into villages. In 2010, there were 6,651 sub districts and 77,126 villages throughout Indonesia6. Villages are the lowest government administrative level, handling services for the residence 14. Indonesia has the fourth largest population in the world. The 2010 Population Census recorded 237.6 million people with 119.6 million men and 118 million women. Half of these people (57.5%) live in Java, an island with only 6.8% of the total land area. This makes Java the most populated area with 1,056 people per square meter7. 15. Indonesia has been able to prevent the population growth rate from increasing rapidly; remaining at 2.34% to 1.49% annually during 2000-2010. The long-term decline in fertility and mortality has lead to a demographic transition which reshapes the population structure from a high proportion of children less than 15 years to a more adult and working population. The explosion of young workers estimated at 42.5 million, aged 15-24 years in 2009 will only decrease slightly to 41.5 million in 2015. The total workforce age (15-64 years) is as large as 157.9 million people in 2009. Among the 104 million workers, however, only 30% are employed in the formal sector while the remaining 70% of the workers in the informal sector are excluded from the social protection scheme, particularly the non-poor informal workers.8 16. Aside from the explosion of the number of young workers, another challenge is the increase in elderly population aged 60 years and above. The number of old people is about 18.43 million (7.8%) in 2009 and expected to increase to 23.2 million (9.8%) in 2015.

B. Economy

17. Economic recovery after the Asian Economic Crisis in 1997 continued with a consistent increase in GDP growth. GDP growth increased from 4.6% in 2009 to 6.1% in 2010 as shown in Table 2.1.

Table 2.1: Selected Economic Indicators (Rp billion - current price)

2008 2009 2010

GDP 4,948,688.4 5,603,871.2 6,422,918.2

GNI 4,668,778.1 5,192,818.4 6,016,597.8

% growth* 6.0 4.6 6.1

% growth* 5.9 4.6 5.4

Source: GDP and GNI from www. bps.go.id *% annual growth from World Development Indicators 2011, constant price 2000

18. Nevertheless, some industries especially those related to export goods are heavily impacted. The decline of the global demand resulted in the decline of export by 28.9% in the first half of the 2009. Representative data on the size of job loss related to this crisis is lacking, but the Employers Association (APINDO) recorded 237,000 workers laid off between 2008 and 2009, most probably from the formal sector. The Government of Indonesia responded quickly

6 BPS-Statistics Indonesia. 2010. Statistical Year Book 2010. 7 BPS-Statistics Indonesia. Preliminary results of population Census 2010. 8 GTZ. 2008. Option for Social Protection Reform in Indonesia.

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to overcome job losses with fiscal stimulus to create employment and ease the burden of income loss due to the decreasing demand for export goods. C. Poverty

19. Indonesia has achieved a significant decline in poverty reduction. However, due to the large size of the Indonesian population, the number of poor people remains very large. In 2009, the number of people living under the poverty line (monthly individual income is Rp200,262 or about Rp816,425 per household) 9 is 32.5 (13.7%) million people, declining from 34.96 million poor people in 2008 to 31.02 million in 201010. The number of poor people is larger in the rural areas than that in the urban areas. The poverty rates declined from 15.4% in 2008 to 14.2% in 2009; further declining to 13.3% in 2010 as shown in Table 2.2. The poverty rate almost doubled in the rural areas compared to those in the urban areas.

Table 2.2: Poverty rates at poverty line (% of related population)

2008

2009

2010

Headcount ratio national 15.4 14.2 13.3

Headcount ratio at rural 18.9 17.4 16.7

Headcount ratio at urban 11.6 10.7 9.9

Source: WDI 2011

D. Employment and Labor Force

20. In 2009, Indonesia recorded 113.8 million people in the labor market with low education level. The number of educated people in the population in the labor market is increasing; although in 2009, half of these people (50.4%) either completed or have not completed primary education, 18.6% completed lower secondary education (SMP) and 23.5% completed General and Vocational High School as shown in Table 2.3. The absolute number of the unemployed is high at 8.96 million people in 2009. The greater concern is underemployment, indicated by working less than 35 hours per week. In 2009, the number of underemployed persons is 31.57 million people. Working for these persons is not by choice; rather it is a survival strategy due to the lacking in social protection, especially unemployment benefit which is not currently available in Indonesia.

21. The high and stable economic growth, however, it is not enough to create employment. In 2009, among the labor force, 104.87 million are employed, but only 38.7% work in the formal sector while 61.6% are engaged in the informal sector, which is often characterized by high uncertainties of regular income and lacking in social security as shown in Table 2.2. The existing social insurance in Indonesia mostly covers workers in the formal sector, while informal sector workers are excluded. In 2009, about 20% of workers (21, 046 million), are self-employed workers and mostly men. The number of these female unpaid workers is increasing from 2008 to 2010.

9 USD$1=IDR10,450.33 10 BPS-Statistics Indonesia 2010.

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Table 2.3: Characteristics of the Indonesian Labor Market, 2008-2010

2008 2009 2010 Male Female Total Male Female Total Male Female Total

Persons in the Labor Market (millions)

69.1 42.8 111.9 70.4 43.4 113.8 71.9 42.7 114.6

(% of population 15-64) - LFPR

83.5 51.1 67.2 83.6 51 67.2 83.8 51.8 67.7

Number of persons working

64 38.7 102.6 65.1 39.7 104.9 67.5 39 106.4

Unemployed persons 5.2 4.1 9.4 5.3 3.7 9 4.4 3.8 8.2

% Unemployed 7.6 9.7 8.4 7.5 8.5 7.9 6.1 8.8 7.1 Underemployed 15.6 15.5 31.1 15.7 15.9 31.6 16.6 16.6 33.3 (% from persons working) 24.4 40.1 30.3 24.1 40 30.1 24.6 42.7 31.3 Education of the Labour Force

Primary School or less 50.4 48.6 Lower Secondary 18.6 19.1 Upper Secondary (general and vocational)

23.5 24.1

Tertiary 7.5 8.1 Informal workers - combined status and occupation. (% from total workers)

59.3 64.5 61.3 60.1 64 61.6 57.2 61.8 59

Self Employed workers 13.50 7.40 20.90 13.80 7.30 21.10 13.80 7.20 21.00

(% of total workers of each sex)

21.2 19.1 20.4 13.1 6.9 20.1 13 6.8 19.8

Unpaid Family Workers 5.00 12.40 17.40 5.30 12.90 18.20 5.20 13.60 18.70 (% of total workers of each sex)

7.8 32.1 16.9 8.1 32.4 17.3 7.7 34.8 17.6

Source: Consultant’s calculation from BPS, Sakernas 2008-2010 E. Education

22. The number of children in primary school aged 7-12 years is 24 million in 2009, and expected to increase to 24.6 million in 2015. Those aged 13-15 years (related to the need for lower secondary school – SMP) is 12.9 million in 2009. Children who should be enrolled in high school (aged 16-18 years) is 13 million in 2009 and projected to decrease to 11 million in 2015.

23. Universal education among children aged 7-12 years (the age of primary education), has been achieved for several years11. In 2009, 98% of children aged 7-12 years were enrolled in primary education. However, only 85.5% of children aged 13-16 years were enrolled at lower secondary school (SMP), which means that some of the children who finished primary school were not able to continue enrollment to SMP. Furthermore, only half of the children aged 16-18 years were enrolled in high school in 2009. This is the trend from 2007 until 2009, with no improvement in educational performance during the last three years. The gender gap disappeared in primary and lower secondary school, but the gap persists for the higher level of education, although this gap gradually narrowing.

11 Statistical Yearbook 2010 (BPS-Statistic Indonesia, 2010) pp. 133-134.

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F. Health

24. In 2010, it was reported that 17.9% of children less than 5 years old suffered from malnutrition12. About 41.2% of the school age children and 54.5% of the youth were found to be lacking in the adequate energy calorie consumption. Almost half of the pregnant women (40.2%) also suffers from the adequacy of energy calorie consumption.

25. Maternal Mortality Rate (MMR) in Indonesia is still high with 228 maternal deaths out of 100,000 births. A lot of effort is still needed to assist pregnant women in receiving adequate pregnancy check and safe delivery as assisted by health professionals. Efforts to reduce the prevalence of child malnutrition and improve maternal health status of women are seen in the Family Hope Program and Social Health Insurance (Jamkesmas) program.

26. The health status of the Indonesians has improved significantly as indicated by the significant decline in Infant Mortality Rate, from 145 infant deaths per 1,000 births before the 1970s13 to only 32.5 per thousand births before 2005. There is an estimated 26.9 infant deaths per 1000 birth in 2009.

III. CURRENT SOCIAL PROTECTION PROGRAM AND ACTIVITIES

27. This chapter presents an overview of the data collection process, objectives, and current social protection activities in the Indonesia including challenges and difficulties encountered during the course of the study. The two-fold objective of this chapter is to present the main features of the social protection programs in the country and provide quantitative information that will serve as the basis for the formulation of the Social Protection Index.

A. Data Collection

28. There are a total of 31 programs in Indonesia. These programs are classified into 3 major social protection components: (i) social assistance; (ii) social insurance; and (iii) labour market programs. Government agencies or ministries implement the major social protection activities and programs in Indonesia.

29. There is no centralized source of the required social protection information. Data on social protection programs are scattered or fragmented among government agencies or line ministries. Some information is accessible online and through published reports, but other information is not easily obtained. For example, publication of the National Medium-Term Development Plan (RPJMN) does not include the number of beneficiaries covered by the program. Therefore, most information obtained in this study comes from direct discussions and meetings with resource persons. The relevant officials and experts as shown in Annex 2 provided unpublished reports.

30. Other difficulties encountered during the data collection process include: (i) lack of an accurate system of recording and reporting of social protection programs, with unpublished reports from various agencies and ministries; (ii) having data on beneficiaries often recorded in groups or communities and not in the exact number of persons; (iii) available reports are not disaggregated by poverty status and gender; and (iv) various agencies and ministries 12 Estimated by body weight to age of children. (BB/U). (MoH 2007, 2010). 13 BPS, 2001

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often have different perceptions on social protection and varied definitions on poor and vulnerable people, with implications on the definition of social protection and its target beneficiaries as stipulated in the SPI handbook.

31. Social protection programs are implemented by the Ministry of Social Welfare; Ministry of Ocean and Fisheries Affairs; Ministry of Education; Ministry of Agriculture; National Development Planning Agency; Ministry of Health; and the Ministry of Finance. Table 3.1 describes social protection programs identified during data collection and implemented by various government agencies and ministries.

Table 3.1: Social Protection Components and Types of Programs

No. Social Protection Category/ Types of Program Comments

Social Insurance Programs

PT TASPEN, PT ASABRI, PT ASKES

1 Saving and Insurance for Civil Servants Tabungan Asuransi Pegawai Negeri (TASPEN)

2 Insurance for Members of Armed Forces Asuransi Angkatan Bersenjata Republik Indonesia (ASABRI)

3 Health Insurance for Civil Servants and the public

Asuransi Kesehatan (ASKES)

4 PT JAMSOSTEK Jaminan Sosial Tenaga Kerja (Social Security for Employees)

Old Age Security Occupational Accidents Benefit Death Insurance Health Services Insurance Independent Workers Insurance Social security for ‘informal’ sector workers Social Assistance Programs MINISTRY OF SOCIAL WELFARE 5 Assisting the Collection and Management

of Social Funds (ASKESOS) It is stated in the ASKESOS handbook that participants should pay Rp5,000 per month, but in reality the premium is paid by the government.

6 Family Empowerment 7 Remote Indigenous Community

Empowerment

8 Empowerment of the Poor 9 Social Assistance to Patriots 10 Rehabilitation and Social Protection for

Children Abandoned under-five; street children

11 Social Services for Elderly

12 Social Rehabilitation for Persons with Disabilities

Disabled, heavily disabled, support for equipments, basic needs of orphanage

13 Social Rehabilitation for the Socially Vulnerable

14 Social Rehabilitation for the Drugs Addicts

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15 Social Protection for Natural Disaster Victims Including basic needs (*exclude housing assistance)

16 Social Protection for Social Disaster Victims

17 Social Protection for Migrant Workers and Victims of Violence and Abuse

Evacuation of abused victims; financial assistance for migrant workers

18 Program Keluarga Harapan (PKH) or the Conditional Cash Transfer (CCT) - the Family Hope Program

Targeted to the Very Poor Households, The Poor and the Near Poor.

MINISTRY OF OCEAN AND FISHERIES AFFAIRS 19 Social Assistance for Coastal Family Targeted to the Poor Households in the

coastal areas MINISTRY OF NATIONAL EDUCATION 20 School Operational Assistance (BOS) for

Elementary and Junior High School Level

21 Assistance for Operational Quality Management (BOMM) at Senior High School Level

22 Scholarship for Poor Students at Elementary, Junior and Senior High School Level

MINISTRY OF AGRICULTURE 23 Development of Food Self-Sufficiency

Regions

BADAN URUSAN LOGISTIK (BULOG) National Food Logistic Agency 24 Rice for the Poor MINISTRY OF HEALTH 25 Social Health Insurance (JAMKESMAS) Free Birth Delivery For All program is just

implemented in 2010, and this is part of the JAMKESMAS program

26 Health Care Security for Poor Family (JPK GAKIN)

Carried out by the Regional Government of DKI Jakarta Province

MINISTRY OF RELIGIOUS AFFAIRS 27 School Operational Assistance (BOA) for

Madrasah (MI/MTs/MA)

28 Scholarship for Poor Students at Madrasah (MI/MTs/MA)

MINISTRY OF PUBLIC HOUSING 29 Assistance for Housing Construction and

Renovation Implementation of this program is carried out by local government for appropriate targeting.

Labor Market Programs

MINISTRY OF MANPOWER AND TRANSMIGRATION (AND OTHER MINISTRIES) 30 Fiscal Stimulus Package (as a response to

the 2008 financial crisis). Building infrastructure aiming at labor intensive employment creation, implemented by several ministries

31 Implementation of Community Based Training Program (Fiscal Stimulus and Social Assistance)

Training funded by the fiscal stimulus and social assistance program

Source: consultant’s Assessment, 2011.

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B. Social Insurance

32. In general, there are two types of social insurance in Indonesia: for goverment employees and for private sector employees. The first type is targeted for civil servants and military personnel, which is covered by PT TASPEN, PT ASKES and PT ASABRI. The second type is covered by PT JAMSOSTEK and private insurance.

1. Saving and Insurance for Civil Servants

33. The saving and insurance for civil servants is managed by PT TASPEN (Tabungan Asuransi Pensiun- Saving and Insurance Pension Funds). Civil servants contribute 8% of the monthly salary, with 3.25% of the salary used to finance the lump-sum benefits named Old Age Benefit (THT) and the remaining 4.75% of the salary considered as contribution to the pension fund. The scheme consists of the Old-Age Saving Scheme (THT) and the Death Insurance (Askem). 34. The Old-Age Saving Scheme is an insurance program consisting of endowment funds associated with pension age and death insurance14. Dwiguna (double benefit) insurance is a type of insurance that provides financial guarantees to participants at retirement age or to their inheritor if the participant dies before reaching retirement age. 35. Death insurance or Askem provides financial guarantees for the participants during death of a family member or inheritance during death of the participant. Askem is given if the child has not reached 21 years or 25 years of age and still single or in school. 39. The participants of this pension scheme consists of civil servants of the central and local government; members of the armed forces on duty and retired before 1 April 1989; members of veterans or members of Komite Nasional Indonesia Pusat (KNIP or Indonesian Central National Committee); and emloyees of PT Kereta Api Indonesia (Indonesia Train Company). 36. In 1995, there are about 4 million active members and 1.5 million retirees. This increased to 4.22 million active participants and 2.09 million retirees in 200915. In 2009, the budget for this insurance was Rp9.62 trillion. 37. The benefit from TASPEN include the pension plan providing periodical retirement pensions or survivors’ pensions, and the lump-sum benefit (THT) payable upon death or retirement of the insured worker. The lump-sum benefit is equal to 16.5 salaries in the event of death in service or retirement age (56 years). The pension amount is calculated at the rate of 2.5% of the final salary for each year of service. Death benefit occurs before or after retirement, with a monthly pension paid to the survivors (i.e., the widow or widower or the children in case there is no spouse).

2. Saving and Insurance for Armed Forces

38. Saving and insurance for the Armed Forces is managed by PT ASABRI (Asuransi Angkatan Bersenjata Republik Indonesia). PT ASABRI is a spillover from PT TASPEN in 1971. PT ASABRI is a public enterprise (Perusahaan Umum). The retirement age varies depending on the level of the military personnel. For the lowest level up to private 14 Government Regulation No. 25 of 1981. 15 www.arsipberita.com (a)

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(Tamtama), the retirement age is 53 years while it is 58 years for an officer (Perwira)16 The monthly pension is 2.5% of the last basic monthly salary multiplied by the number of years in service. The total amount is deducted by 2% for health insurance contribution. 39. This is a social insurance system designed to provide pension and endowment insurance benefits to officials of the Indonesian Armed Forces and employees of the Ministry of Defense. The coverage of health insurance is 862,411 persons in 2003. The coverage increased from 1.4 million persons in 2008 to 1.78 million persons in 2009. The budget for this insurance in 2009 is Rp245.6 billion.

3. Health Insurance for Government Civil Servants and the public (ASKES)

40. ASKES or Health Insurance for Civil Servants and the public, is run by PT ASKES, and targeted to government civil servants and retirees and their families. It also provides health care service on behalf of PT ASABRI for members of the armed forces and their families17. In addition, the company was given a license to expand membership to commercial entities on a voluntary basis. 41. PT ASKES manages 3 different programs, each with its own regulations, namely: (1) health Insurance for Civil Servants and the Military which is a compulsory membership; (2) commercial health insurance which is a voluntary membership18; and (3) ASKESKIN or health insurance for poor families with contribution paid by the Government19. In 2008, the program was changed to Jamkesmas (Health Cover for the Poor Community), implemented by the Ministry of Health, applying a different system of administration.

42. PT ASKES membership is compulsory for government civil servants, retired army personnel, veterans, and their families. Civil servants are automatically eligible upon issuance of a letter from the government, stating that the individual is eligible as a designated civil servant. The civil servant needs to report to the nearest PT ASKES office with a formal letter to activate membership of the participant’s salary in the payroll. Health services are provided through a health maintenance organization (HMO) network that is structured to provide preventive, curative, and rehabilitative treatments. The HMO also promotes health services. 43. The benefits of ASKES includes services in the form of primary health care both outpatient and hospitalization, advanced health care such as One Day Care and advanced hospitalization, maternity service, blood provision service, medicinal service, special treatment (i.e for cardiac, haemodialisis, kidney and lung transplant). The benefits also include medical equipment service (e.g. eye glasses, dental prosthesis, hearing aid, movement indicator pen and screw, and other implants). 44. The budget of this insurance in 2009 is Rp4.1 trillion or $391.8 million. The coverage of this type of social health insurance is indicated by ownership of an ASKES card. The membership of ASKES in 2008 is 14.18 million, increasing to 16.31 million in 2009. Table 3.2

16 Law no. 34 year 2004 about Indonesia Armed Forces or Tentara Nasional Indonesia (TNI). From

www.kpu.go.id/dmdocuments/uu%20tni.pdf, last visited: 4 October 2001) 17 Based on Government Regulation No. 69 of 1991.

18 Based on Government Regulation No. 6 of 1992. 19 Started in 2006.

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presents the number of participants by membership. About 67% are active members (those who are still paying contributions deducted from civil servants’ salaries); about 20% are pensioners; only 7% are army pensioners, 4% are veterans; and, less than 1% are doctors and/or nurses. Based on the 2009 ASKES Annual Report, 8.07 million are males and 8.25 million are females.

Table 3.2: ASKES Membership Based on Types of Membership, 2009

Member Group Member Family Numbers Proportion (%)

Active Civil Servants 4,513,653 6,476,127 10,989,780 67.37

Pension Beneficiaries 1,831,992 1,548,832 3,380,824 20.72

Pension Recipients of Military/Police

706,661 503,186 1,209,847 7.41

Veterans 582,185 122,015 704,200 4.32

PTT (Doctors/Nurses) 20,404 8,397 28,801 0.18

Total 7,654,895 8,658,557 16,313,452 100

Source: ASKES Annual Report 2009

4. Social Insurance for Private Employees

45. The social insurance for private employees is covered by PT JAMSOSTEK (Jaminan Sosial Tenaga Kerja – Social Security Program for Employees). There are 4 schemes provided by this company: (i) Old Age Security; (ii) Occupational Injury Benefit, (iii) Death Insurance; and (iv) Death Benefit. In 2009, there are 29 million workers being recorded as members (active and non-active)20. The company or employer has the obligation to pay contribution based on group or type of the company. For instance, Group I contributes 0:24% of the monthly wage; Group II contributes 0:54% of the monthly wage; Group III contributes 0.89% of the monthly wage; Group IV contributes 1.27% of the monthly wage; and Group V contributes 1.74% of the monthly wage.

a. Old Age Security (JHT)

46. The Old Age Benefit is the accumulating funds scheme that provides savings for an employee’s loss of income due to work inability such as death, total and permanent disability and retirement upon reaching the age of 55. JHT is managed by a primary savings that is payable from the contribution paid by every employee and employer. These contributions correspond with the level of wage that is paid by the employer. The required contribution allocated to the JHT program amounts to 5.7% of the monthly salary in accordance with Government regulations; with 3.7% paid by the employer and 2% paid by the employee. 47. The accumulated funds from participants’ contribution plus interest is returned to the participants at the time of retirement (55 years of age); upon death or permanent total disability; in the event of involuntary unemployment after participating in the scheme for at least 5 years

20 Based on 2009 PT Jamsostek Annual Report.

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and 1 month waiting period; during permanent migration overseas; or when joining the ranks of government as a civil servant, police, or armed forces. The total expenditure of the JHT insurance is Rp5.8 trillion or $554.03 million in 2009.

b. Occupational Injury Benefit (Jaminan Kecelakaan Kerja/JKK)

48. Accidents, including occupational diseases, are risks faced by employees in the course of doing their jobs. Health and safety of workers is the responsibility of employers. Employers have an obligation to provide insurance and pay a premium ranging from 0.24% to 1.74% according to the type of business. 49. The amount of benefit received by the workers is based on the type of business as stated on the contribution. The premium or contribution for this social insurance scheme is fully paid by the employers. Therefore, self-employed workers pay the premium by themselves, raising the question about their ability to pay the premium. 50. According to regulation from the Ministry of Manpower and Transmigration, the amount of premium for informal workers is set at a single rate of 1% from their earnings in 1 month without considering the risk in each type of occupation. The minimum amount of monthly earnings is at least equal to the regulation of minimum provincial or district wages. The payment of the premium can be made in cash directly to the nearest PT Jamsostek branch, through direct transfer to the participant’s bank account, or through agents in the participant’s workplace. The expenditure of this insurance is Rp343.4 billion or $32.86 million in 2009.

c. Death Insurance - Survivors’ Benefits (JK)

51. Death benefit is for the survivors of the participants who died due to non-work related accidents. This benefit is an effort to ease the burden on families for funeral expenses and compensation in the form of money. Employers, or the participants themselves if they are self-employed workers, are obliged to bear the Death Benefit Program contributions by 0.3% with a guarantee of death given was Rp 12 million consists of Rp 10 million compensation for deaths and Rp 2 million compensation for funeral expenses, and there is also periodical payment Rp200,000 per month during 24 months. However, this scheme is achellenged by lacking in awareness and ability to pay by the participants. And thefore sustianibility of this pilot project is challenged. The expenditure of this insurance in 2009 is Rp255.8 billion or $24.48 million.

d. Health Benefit (JPK)

52. The JPK program was specially formulated by JAMSOSTEK to serve as a program that facilitates health care benefits and compensation to employees and their families. JPK benefits ranges from promotion, preventive, curative, and rehabilitative services. Contributions are paid fully by the employers or participants themselves if they are self-employed workers; 3% of wages for those who are single (with maximum Rp 1 million); and 6% for those who are married. These health care benefits provide employees with a level of comfort that enhances work focus and increases productivity. The employees are given a healthcare card (Kartu Pemeliharaan Kesehatan) as proof of identity to obtain health services.

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53. JPK benefits include health care services in the form of ambulatory services and hospitalization, pregnancy and maternity care, diagnostic tests, medical emergencies, and special care (e.g., reimbursement for eye glasses, optical prosthesis, hearing aid, orthodontics, arm, and leg prosthetics). These services are provided through the Health Care Services Centers (Pelaksanaan Pelayanan Kesehatan or PPK) that are located in various cities throughout Indonesia. The expenditure of this insurance is Rp665.6 billion or $63.69 million in 2009 .

e. Social Insurance for Independent Workers

54. The Insurance for Independent Workers or Tenaga Kerja Mandiri (TKM) from PT JAMSOSTEK is an insurance program aimed at workers without any work relation with other parties, employers or organizations, or Hubungan Luar Kerja (HLK) and mainly targeted for informal sector workers. In 2009, the insurance claims in the annual report of PT JAMSOSTEK is Rp9.08 billion or $868,834. The report states insignificant coverage of this insurance program because although the number of informal sector workers is 67.86 million, the beneficiaries are only 223,000 workers, a coverage of about 0.3%.

C. Social Assistance

55. There are 25 social assistance programs in Indonesia and most of these programs are implemented by the Ministry of Social Welfare (MOSW). Other ministries such as the Ministry of National Education, Ministry of Public Housing, Ministry of Ocean and Fisheries Affairs, and Ministry of Agriculture also have their own programs that can be categorized as social assistance.

1. Social Assistance Being Implemented by Ministry of Social Welfare

a. Assisting the Collection and Management of Social Funds (ASKESOS)

56. The ASKESOS program has been implemented by the Ministry of Social Welfare since 2003. This program is a social protection system targeted to informal workers. The benefit is in the form of income replacement in case the breadwinner, who has not been covered by any other social insurance scheme, suffers from sickness, accident or death. The implementing agency is group of people or a community group assigned by the Ministry of Social Welfare, which aims to increase community participation by providing a community-based social insurance.

57. Participants have to pay a monthly premium of Rp5,000 to the implementing agency that will provide a receipt, adhering to all laws and regulations21. Although this program is under social insurance, it is implemented as savings, meaning that the participant will receive a sum of money equal to the premium paid, whether or not the benefit is utilized.

58. The eligibility requirements for inidividuals to join ASKESOS include: (i) being the main income earner in the family (male or female), mostly as informal workers with a minimum income of Rp300,000 per month; (ii) having been married or between 21 and 59 years of age; and 3) owning an ID card (KTP).

21 ASKESOS Field Officers’ Handbook.

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59. The budget of ASKESOS for 2009 is Rp7.26 billion or $695,000. In 2009, the beneficiaries of this program is 51,200 people. Until 2009, ASKESOS covered as many as 192,600 participants, spread across 33 provinces as partner institutions. However, the implementation is challenged by the lack of awareness of informal workers and the inability to pay premiums. Therefore, sustainability of this program is highly questionable.

b. Family Empowerment

60. This is a program that gives assistance to empower vulnerable families, women at risk of economic and social constraints, as well as families with social or psychological problems. The activities in this program are conducted through social welfare family guidance (Bimbingan Kesejahteraan Sosial Keluarga), at the Consulting Institution for Family Welfare (Lembaga Konsultasi Kesejahteraan Keluarga) and the Center for Family Empowerment (PUSDAKA). 61. The definition of vulnerable family is a family with a head and spouse, married up to five years, experiencing socio-economic problems (e.g., earning only 10% above the poverty line) and unable to fulfill most of their basic needs. Women at risk in economic and social situations are unmarried women (single or widowed), aged 15-59 years old, who do not have sufficient earnings to provide for their basic needs. Families with social psychological problems experience domestic conflicts, especially between husband and wife; resulting in the failure of the family to provide for basic needs (MOSW, 2007, p. 15). 62. The budget for this program is Rp11.46 billion or around $1.1 million22. The target beneficiaries of this program in 2009 is 23,430 households (around 93,720 indivduals), targeting full coverage. In 2009, the Ministry of Social Welfare established the Center for Family Empowerment (PUSDAKA) in 9 locations and the Consulting Institution for Family Welfare in 465 districts in Indonesia. As many as 14,405 vulnerable households have been given assistance in 2009, and assistance to women at risk in socio-economic situations had been received by 9,025 households.

c. Remote Indigenous Community Empowerment

63. This is a program granting assistance and empowerment to people or households living in remote areas mostly occupied by the indigenous community. The main activities in this program include: (i) preparation for mapping, assessment, feasibility studies, and strengthening community readiness; (ii) empowerment activities for settlement and placement of residents as well as provision of stimulus; (iii) implementation for further empowerment or strengthening of the social environment, human resources, and cooperation; and (iv) further implementation of the empowerment of human resources, protection and advocacy, as well as development cooperation. 64. The definition of Komunitas Adat Terpencil (KAT) or indigenous community is a group of people or community who live in a small local social unit located in a remote area in Indonesia, whose lives are dependent on nature; with a habitat that is socially detached and ‘unmodernized’ compared to most people living in Indonesia (MOSW, 2007, p. 14). The

22 The exchange rate used to calculate the budget in US Dollar for the SP programs described is based on the

information from Table S1, which is US$ 1 = ID Rp. 10,450.33.

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budget for this program in 2009 is Rp21.16 billion or $2 million. The program is targeted for 10,301 houseolds or 41,204 individuals. The coverage is 100% of its target.

d. Empowerment of the Poor

65. The Empowerment of the Poor program is focused on reducing the number of poor population, aiming at improving social functioning and social welfare of poor families, as well as raising their living standards. The activities of this program varies from social condition preparation, development of socio-cultural living and building micro business institutions. Assistance is also given in the form of housing renovation to improve the housing quality of poor communities. 66. The defintion of poor family targeted for this program according to the MOSW guide book23 is: (i) an individual or head of family without a source of income and unable to provide or acquire basic needs; (ii) an individual with income capacity but cannot provide or acquire basic needs that can provide a sufficient standard for living. The budget assigned for this program in 2009 is Rp176.8 billion or $16.9 billion. It is targeted by the MOSW in 2009 to empower 92,841 families or 371,764 persons.

e. Social Assistance to Patriot

67. This program aims to improve the welfare of the family of patriots, the patriots or veterans of war, and widowed of the patriots by giving life security assistance to cover health services and housing social assistance. The definition of patriot (pioneer of independece or perintis kemerdekaan) used to determine eligibilty for this program are individuals who fought in the war of independence for Indonesia and achieved legal status as pioneer of independence. The family of the patriot is defined as the husband or wife of patriot and their biological and/or legally adopted children. In 2009, this program is targeted for 1,855 individuals (the patriots or their survivors) with the amount of Rp35.04 billion or $3.35 million with 100% coverage.

f. Rehabilitation and Social Protection for Children

68. The focus of this program is to increase basic social services for the neglected and abandoned children through activities, such as the fulfillment of basic needs for abandoned children including street children; and the increase in the number of institutions giving assistance to abandoned children. 69. The children included in this program are those under the age of 5 as well as those aged 5-18 years who are abandoned due to parental inability in providing basic physical, psychological and sipritual needs. This neglect or abandonment can be due to poverty, lack of responsibility, illness, death, lack of educational ability or domestic disputes between parents. 70. This program is also targeted for street children who spend most of their time on the street to earn their living or live in public spaces. In 2009, the budget for this program is Rp188.65 billion or $18 million. It was targeted for 169,306 children.

23 Ministry of Social Welfare. 2007. MOSW Guidebook. p. 14

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g. Social Services for Elderly

71. The main objective of this program is to ensure that elderly Indonesians who are neglected or abandoned obtain adequate protection and services by the State for the rest of their lives. MOSA defined elderly abandonment as a state of neglect or abandonment of the elderly by the family or social environment due to various reasons such as lack of responsibility, economic or educational ability, or family dependents. The focus of this program is to increase basic social services with activities that fulfill the basic needs for the elderly and increase the number of institutions giving assistance to the elderly. 72. This social assistance gives priority to the abandoned or neglected eldery, specifically for those who are 70 years and older or the 60 year-old bedridden elderly. Other criteria include elderly whose lives depend on assistance from other people or bedridden, without regular income to fulfill basic needs, suffering from sickness, and unable to perform daily activities. Patriots and those who already covered by other schemes such as those living in social institutions are not included.

73. In 2009, this program was targeted for 10,000 abandoned elderly people. The budget is Rp56 billion or $5.36 million, fully covering all the targeted 10,000 elderly people. Due to financial shortage, in 2009, this program was only carried out in 28 out of the 33 provinces in Indonesia. The development of the pilot project for social protection for the elderly is carried out by providing direct cash transfers of Rp300,000 per person per month. The cash transfers help the elderly fulfill their basic needs such as nutrition and food; health care (e.g., purchase of medicines, visits to doctors, etc.); transportation cost (e.g., visits to the clinic or the post office to collect pension funds); death or funeral costs; and other needs (e.g.. purchase of equipment and other basic needs such as savings and donations). The payment distribution is done through the cooperation of the PT POS (Central Post Office) Indonesia.

h. Social Rehabilitation for Persons with Disabilities

74. The focus of this program is to increase basic social services of people with disabilities through activities such as: (i) fulfillment of basic needs for people with disabilities; (ii) increase the number of institutions or firms that employ people with disabilities; (iii) increase the number of social institutions that give assistance and rehabilitation services to disabled people. Cash transfer in this program is only given to severely disabled persons to maintain their health condition and provide additional income for daily needs, maintaining their level of social welfare. 75. The disabled person includes the physically disabled, mentally disabled or both physical and mentally disabled persons (including children and also disabled persons due to chronic diseases). There are programs other than the cash transfer program (Rp300,000 monthly per person or $28.7), that are aimed for disabled persons. Assistance in the form of cash transfers is given to care givers within the households, mainly poor families. 76. The budget for this program amounted to Rp86.6 billion or $8.3 million in 2009. In 2009, this program already covered 34,195 disabled persons, among which 17,000 were severely disabled. The MOSW recognized that this coverage is too low since the estimated number of severely disabled is 163,232 persons24. 24 Perfomance Accountability Report, 2009.

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i. Social Rehabilitation for the Socially Vulnerable

77. The focus of this program is to increase basic social services to people who are socially vulnerable. The activities include the fulfillment of basic needs for people that are social vulnerable and increase the number of social institutions that give assistance and rehabilitation services to people with social vulnerable issues. 78. People who are considered as socially vulnerable are those suffering from social dysfunction. These include juvenile delinquencies, ex-convicts, victims of drug abuse, homeless people, beggars, people with of HIV/AIDS, sexually promiscuous, transvestites, and people with chronic diseases who are abandoned. They are given assistance and rehabilitation, so they could be more responsible for their lives, command discipline, comply with the order of social life, and live according to the norms and values of society. For HIV/AIDS victims, this program equips them with skills that could be useful for society, offering rehabilitation to help maintain their health condition. 79. The budget for this program is Rp13.4 billion or $1.28 million in 2009. During this year, 6,653 socially vulnerable people were targeted, with a 100% coverage. In 2009, a basic social services program was provided to people who were socially vulnerable. In 2009, the grant of Rp3,000 per children or person was given for 365 days from 1 January 2009 until 31 December 2009). The grant for this program is given through social institutions for their clients. This program continued until 2010.

j. Social Rehabilitation for the Drugs Addicts

80. The focus of this program is to increase basic social services to people who are drugs addicts, through activities such as the fulfillment of basic needs for drugs addicts and the increase in the number of social institutions that give assistance and rehabilitation services to drugs addicts and people with dysfunctional behavior. 81. This program aims to naturally recover the social functions of drugs addicts in the society. The drug addicts are given rehabilitation to regain and improve their self-confidence and self-esteem so they could be more responsible for their lives, gain more discipline and live their lives according to the norms and values of society. The rehabilitation program is usually conducted through the development of self-help groups. These groups also have a role in improving the standard of living as well as self-esteem of those former drugs addicts, so that they could return to the society and regain their social functions within society.

82. The drug addicts covered by this program is defined as an individual who is addicted to drugs, psychotrophics and other addictive substances (including alcohol abuse) not for the purpose of medication and without doctor’s perscription. For 2009, the budget for this program is Rp10.9 billion or $1 million, targeting 13,252 drug addicts. The actual coverage can be very low because the study of the Center of Health Control of the University of Indonesia (PPK UI and Barkonas, 2008) estimates that there are 1.42 million drug addicts in 2008. If this number reflects the true number of drug addicts, the coverage of this program is below 1%.

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k. Social Protection for Natural Disaster Victims

83. This program aims to ease the burden of the natural disaster victims. This program fulfills the emergency needs of natural disaster victims and provides assistance for housing materials. 84. The budget in 2009 is Rp201 billion or $19.2 million. During 2009, this budget was spent on 1.05 million disaster victims. The assistance given in a budget year is not only limited for the victims of natural disasters that occur in that year because the assistance can be given during other periods. Some of the natural disasters that occured in 2009 are the earthquake 7.2 SR in West Papua province (Manokwari and Sorong districts), the earthquake in West Java that affected 14 districts and the earthquake in West Sumatra (Padang and Pariaman). Coverage is difficult to estimate because the budget allocation includes victims from previous disasters.

l. Social Protection for Social Disaster Victims

85. This program aims to ease the burden of the social disaster victims. This program ensures the fulfillment of the emergency needs of social disaster victims. 86. Social disaster is a disaster caused by humans due to economic gaps, discrimination, injustice, negligence, ignorance, and narrow perspectives from a group of people25. The budget of this program in 2009 amounted to Rp113.5 billion or $10.86 million, targeting 234,800 social disaster victims.

m. Social Protection for Migrant Workers and Victims of Violence and Abuse

87. This program deals with victims of violence and abuse, including migrant workers. This program assists and fulfills the emergency needs of victims of violence and migrant workers. 88. The victims of violence and abuse include: (i) children forced into prostitution, to be sold or traded, and forced to work in very poor conditions; (ii) female victims of violence and abuse; and (iii) migrant workers who experienced violence and abuse. In 2009, the budget for this program is Rp20.5 billion or $1.96 million for 33,231 victims of violent and abuse.

n. Program Keluarga Harapan or Conditional Cash Transfer (CCT)

89. In 2007, the Government began implementing the PKH program in 7 provinces: West Sumatra, DKI Jakarta, West Java, East Java, North Sulawesi, Gorontalo and East Nusa Tenggara. The main goal of this program is to improve the quality of human capital, especially for children of poor families. The specific goals of this program are to improve: (i) socio-economic conditions of the beneficiaries; (ii) education levels of the beneficiaries; (iii) health and nutrition status of pregnant women, postnatal women, and children under 5 years of age in recipient households; and (iv) recipient’s access to quality education and health services.

25 MOSW (2007)

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90. The PKH program is targeted to the very poor families under the terms that several health and education-related indicators should be met. Families are provided with an allowance based on concern for their children’s education and health. The fund, however, is not directly given to eligible households. The household beneficiaries have to collect the funds at the local post office. 91. Eligible households must be classified as very poor or chronic poor (Rumah Tangga Sangat Miskin), meeting one of the following conditions: (i) having a child aged 6–15 years or having a child under 18 years who has not completed primary school; (ii) having a child aged 0–6 years; and (iii) having a pregnant or lactating mother. The Ministry of Social Welfare is the implementing agency and the post office manages the transfer of funds. The conditions that should be met by beneficiaries are presented in Table 3.3. 92. In 2009, the budget for this program is Rp1.1 trillion or $106.36 million, targeting 720,376 households. The PKH funds are distributed quarterly to individuals from very poor households. As long as the households comply with the conditions stated in the guidelines as presented in Table 3.3, they are eligible to receive the cash transfers. Otherwise, upon evaluation and a few warnings, the cash transfer is terminated.

Table 3.3: The PKH scheme as Implemented by Beneficiaries

Sector Indicators

Health (1) Four prenatal care visits for pregnant women at health institutions

(2) Taking iron tablets during pregnancy

(3) Delivery assisted by a trained health professional

(4) Two postnatal care visits

(5) Complete immunisations (BCG (Tuberculosis), DPT (Diphtheria, Whooping Cough, Tetanus), polio, measles, Hepatitis B and additional immunisations for children aged 0-11 and 12-59 months

(6) Ensuring monthly weight increases for infants

(7) Monthly weighing of children under-3 and bi-annually for children under-5

(8) Vitamin A twice a year for children under-5

Education (9) Enrolment of all children aged 6 to 12 years in primary school

(10) Minimum attendance rate of 85% for all primary school-aged children

(11) Enrolment of all children aged 13 to 15 years in junior high school; and

(12) Minimum attendance of 85% for all junior secondary school-aged children

Source: ADB. 2009. Social Protection in Asia.

93. In 2008, the Government of Indonesia expanded PKH to the other 6 provinces (Aceh Darussalam, West Nusa Tenggara, South Kalimantan, Banten, North Sumatra and Yogyakarta). Under the scheme, the province selection ensures that various types of areas

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are represented. Locations are first selected on the basis of several criteria: (i) high incidence of poverty; (ii) high incidence of malnutrition; (iii) low transition rate from primary to secondary school education; (iv) inadequate supply of health and education facilities; and (v) approval from the local government for residents to participate in the CCT projects.

Table 3.4: Program Keluarga Harapan Cash Transfer Scenario

Annual Benefits: Rp (in 000s)

$

Fixed transfer amount 200 20

Additional amount for poor families who have:

Children <6 years

Pregnant/lactating mother

Primary school children

Junior secondary school children

800

800

400

800

80

80

40

80

Average transfer per poor family

Minimum transfer per poor family

Maximum transfer per poor family

1,390

600

2,200

139

60

220

Source: ADB. 2009. Social Protection in Asia.

2. Being Implemented by Ministry of Ocean and Fisheries Affairs

a. Social Assistance for Coastal Family

94. The only program that falls under the category of social protection implemented by the Ministry of Ocean and Fisheries Affairs is Social Assistance for Coastal Family (PEMP) or Economic Development of the Coastal Community. This program is categorized as social assistance (bantuan sosial), targeting poor people and the near poor living in coastal areas. This program is similar to unconditional cash transfers and often called the Unconditional Cash Transfer (BLM).

95. The mechanism of this PEMP program usually consists of a group, mostly 10 fisherman or coastal residents on the village level, developing a proposal to buy physical capital to be submitted to the Companion Unit, acting as the representative of the Ministry of Ocean and Fisheries Affairs. If the group proposal is accepted, the Bansos funds will be transferred to group’s bank account, and the group member can directly use these funds under supervision of the Companion Unit. In 2008, Bansos still adopted the old system, with funds categorized according to its purpose: (i) Rp12.9 billion for Kedai Pesisir (coastal shops), (ii) Rp7.4 billion for Gas Station for Fishermen (SPDN organized by the local community); and (iii) the rest for BLM. BLM is given to only 2 villages in every district. The Ministry of Ocean and Fisheries Affairs uses unique strategies to deliver Bansos such as religious institutions (e.g., church, pastoral, mosque, or other religious communities) as their channel. For the year 2009, the target covered was 251,832 poor individuals living in coastal areas with a budget of Rp130.9 billion or $12.5 million.

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3. Implemented by Ministry of National Education

a. School Operational Assistance or Bantuan Operasional Sekolah (BOS) for Elementary and Junior School Level26

96. BOS program, is a social assistance implemented by the Ministry of National Education. It aims to compensate the school’s loss of income due to the government policy waiving school fees of poor and vulnerable children enrolled at the elementary and junior school level, in both private and public schools. The program can also ease the parents’ burden of paying school fees for their children27. This program commenced in July 2005. This program supports the government’s goal in achieving the Nine-Year Compulsory Basic Education Program (Program Wajib Belajar Sembilan Tahun).

97. The funds of BOA program are not directly given to the poor students. Instead, funds are transfered to the schools to be managed by the school management. The amount of the funds depends on the total number of students in each corresponding school.

98. The BOS program is directed towards all elementary and junior secondary schools, including Open Secondary Schools (SMPT) and Place of Independent Learning Activities (TKBM) which are run by the community, by both public and private schools in all provinces in Indonesia. Acceleration of non-formal Paket A program (equivalent to elementary level) and Paket B program (equivalent to junor high level) are not included as target beneficiaries of the BOS program.

99. The budget for BOA program in 2009 is Rp16.04 trillion or $1.54 billion, covering 26.87 million elementary and junior high school students. In comparison with the number of elementary and junior school students using the estimated 2009 SUSENAS data, the number of students covered by this program is lower. The estimate is that there are 38.13 million elementary and junior high school students. Based on this number, the coverage of this program is roughly 70% of the students.

b. Assistance for Operational Quality Management at Senior High School level or Bantuan Operasional Manajemen Mutu (BOMM)

100. The BOMM program is similar to BOA program with funds given to both general and vocational senior secondary schools. This program aims to: (i) improve the quality of the learning process through the provision of practice and teaching materials, modules, and learning tools; (ii) support the effort to improve the English language skills of students; and (iii) improve the administrative management of the assessment results.

101. The BOMM program is directed towards all general and vocational senior secondary schools. The bugdet for BOMM in 2009 was Rp618.11 billion or $59.15 million for 5.77 million students. The estimated number of students eligible for BOMM according to the 2009 SUSENAS data is 7.02 million students. The coverage of this program in 2009 is about 82%.

26 Ministry of National Education (2009) Buku Panduan BOS 2009 [BOS Guide Book 2009]. 27 This is a compensation of basic needs prices due to the reduction of fuel oil subsidy.

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c. Scholarship for Poor Students at Elementary, Junior and Senior High School Level

102. As of the fiscal year 2004-2005, education assistance through PKPS-BBM programs are given in the form of scholarships for poor students in elementary and junior high schools, known as the Student Special Assistance (BKM). The criteria to be eligible for this scholarship is being a poor student living in a poor household as set by the BPS standard of school enrollment. In 2009, the BKM was given to 3.08 million poor students in elementary, junior high, and high schools. The budget is Rp1.48 trillion or $141.1 million. According to the 2009 SUSENAS data, the estimated number of poor students is 4.47 million students. Therefore, we can estimate that the coverage of this program in 2009 to be about 69%. However, we need to be cautious and estimate the coverage because the number of poor students is also estimated by the ministry based on BPS data28.

4. Being Implemented by Ministry of Agriculture

a. Development of Food Self-sufficiency Regions (Pengembangan Desa Mandiri Pangan or PDMP)

103. PDMP is a program segmented to poor people and communities with food insecurity. In this program, the MoA will give financial assistance to the heads of household that live in regions with food insecurity to generate business in any sector for income purposes. This income is expected to help households buy food. The target or recipients of this program is an average of 45 to 50% poor households, with the rest categorized as near poor households. The budget for this program in 2009 is Rp34.9 billion or $3.34 million covering 244,328 beneficiaries.

5. Being Implemented by Board of Logistic Affairs (BULOG)

a. Rice for the Poor (RASKIN)29

104. This is a subsidized rice program to help poor people. The targeted household recipients are poor households. Since 2008, the data of poor households is obtained from the Social Protection Program (PPLS) data collected by the BPS-Statistics Indonesia. Since 2008, the eligible recipients of poor households should only pay for Rp1,600/kg of rice instead of the normal market price of around Rp5,000/kg to 5,500/kg, on average.

105. In 2009, the budget for this program is Rp13 trillion or $1.24 billion, targeting 18.5 million individuals. Based on estimation using the 2009 SUSENAS, the number of poor people in Indonesia is approximately 21.45 million people. Therefore, based on this estimate, the coverage of the RASKIN program is around 86%. The challenge in implementing this program is to improve the accuracy of targeted recipients, due to the fact that many poor households are not included or registered as targeted household recipients of the RASKIN program.

106. The RASKIN program continued in 2010 for a 12-month period to cover 17.5 million RTS (Targeted Households) with a subsidized price of Rp1,600/kg. The Board of Logistics Affairs (BULOG) claims that the RASKIN progam not only helps the poor obtain subsidized rice, but

28 http://edukasi.kompas.com/read/2011/07/25/13362618/Mendiknas.Bantah.Database.Siswa.

Miskin.Lemah. ‘Mendiknas Bantah Database Siswa Miskin Lemah’. Kompas.com. 25 July 2011. 29 www.bulog.co.id, “Sekilas Raskin” [Overview of Raskin], June, 2011.

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also helps stabilize the market price. RASKIN reduces the demand for rice in the market by 18.5 million individuals in 2009.30

6. Being Implemented by Ministry of Health

a. Social Health Insurance Program for the Poor (Jamkesmas/Jaminan Kesehatan Masyarakat) and Free Birth Delivery for All (Jampersal/Jaminan Persalinan)31

107. As a response to the National Social Security System (NSSS) Law No. 40, the Ministry of Health introduced the first phase of its plan to achieve universal health coverage through a mandatory public health insurance scheme, called the Health Insurance for Poor (ASKESKIN) in 2004. In order to improve the management and delivery process of this social health insurance, ASKESKIN changed into Jaminan Kesehatan Masyarakat or JAMKESMAS, a health insurance program for the poor in 2008. PT ASKES was assigned to manage the operation of JAMKESMAS and is responsible for conducting member verification of membership, issuing official membership letters and member cards, as well as handling complaints from members. 108. In 2008, the target beneficiaries of this social insurance program (e.g., the poor, including the near poor or people who cannot afford to pay for health services) is 19.1 million poor households, or approximately 76.4 million people based on data from BPS-Statistics Indonesia in 2006. 109. Since 2010, JAMKESMAS also offered a program called Free Birth Delivery for All or Jaminan Persalinan/Jampersal. This program is part of the JAMKESMAS program. This program is directed towards pregnant women, postpartum mothers (up to 42 days postpartum), as well as newborn babies (0–28 days) who have not been covered by any maternal health program. Participants of the JAMPERSAL program can utilize services in all health care centres and facilities. JAMPERSAL services are not limited to birth delivery service only, but also cover pregnancy check-up, antenatal care, and postnatal care. With this program, pregnant women could obtain free birth delivery, attended by skilled health personnel, by only showing their National ID Card. This program aims to reduce Maternal Mortality Rate and Infant Mortality Rate to achieve the MDGs in 2015. 110. The JAMKESMAS scheme is funded by the central government from general tax revenue. Beneficiaries are not responsible for premium payments nor are they charged a co-payment at the time of visit. Currently, it is the responsibility of the local government to finance the gap between the actual cost of insuring its population and what the central government provides via Jamkesmas reimbursements. Without further support for the poorest localities, this growing responsibility will become more problematic. Membership quota/target for JAMKESMAS program in 2009 included poor and underprivileged families in Indonesia totalling 76.4 million persons.

30 http://www.bulog.co.id/sekilasraskin_v2.php (19 September 2011) 31 Compilation from PT ASKES Annual Report 2009, http://jlnstage.r4d4r.net/content/indonesia-jamkesmas (report

written for Results for Development Institute with input from Dr. David Dunlop (GTZ Indonesia), Dr. Ascobat Gani (Dean, School of Public Health, University of Indonesia), and Dr. Ghufron Mukti (Dean, Faculty of Medicine, Gadjah Mada University)), and direct interview with resource person in the Ministry of Health.

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111. The budget for this program in 2009 is Rp4.6 trillion or $440.18 million. The coverage of Jamkesmas is 100% or 76.4 millions poor and near poor people). The budget per person is very small, which is Rp60,200 per person or $5.76 per person.

b. Health Care Security for Poor Family (JPK Gakin)32

112. The JPK GAKIN program is a Health Insurance program for poor families implemented by the Regional Government of DKI Jakarta Province. The premium of this health insurance program is paid by the Regional Government of DKI Jakarta Province with the funds for the premium obtained from the Fuel Subsidy Reduction Compensation budget or Anggaran Kompensasi Pengurangan Subsidi BBM. The JPK Gakin program is similar to Jamkesmas program since both programs are categorized as health care insurance programs for poor people. The difference between the 2 programs is that JPK Gakin is a program from the Regional Government of DKI Jakarta province, while Jamkesmas is a program conducted by the Central or National Government through the Ministry of Health. 113. Eligible recipients for this program are residents of the DKI Jakarta province, who have a DKI Jakarta identity card and meet the criteria of poor people according to the 14 criteria33 used by the BPS-Statistics Indonesia. Specifically for dialysis patients, the Health Department of DKI Jakarta province provides two types of poor categories - poor patients who are given Gakin Card and underprivileged patients (pasien kurang mampu) who are provided with Poor Certificate (SKTM). If the patients are poor and have the Gakin Card or letter of cost exemption from Health Department of DKI Jakarta province, then the patients are entitled to a fee waiver for dialysis treatment. The budget for JPK Gakin in 2009 is Rp413 billion or $39.5 million, covering 643,520 poor residents in DKI Jakarta.

7. Being Implemented by Ministry of Religious Affairs

a. School Operational Assistance (BOA) for Madrasah (MI/MTs/MA)

114. This program is similar to the BOA program conducted by the Ministry of Education, but directed towards religious or Islamic schools at the elementary, junior and senior secondary high school called Madrasah Ibtidaiyah (MI), Madrasah Tsanawiyah (MTs) and Madrasah Aliyah (MA), respectively. Similar to the BOS and BOMM program from the MONE, this program also provides compensation for the school management due to the government policy of waiving school fees at all levels of Islamic schools for poor and vulnerable students. This program helps ease the burden of school fees for other students. 115. The budget for this program in 2009 is Rp3 trillion or $288.9 million. It covers 6.29 million students of Islamic Schools, MI, MTs and MA. According to the estimate of the number students of Islamic Schools in Indonesia using the 2009 SUSENAS data, the beneficiaries are an estimated 4.40 million students, which is much lower then the number of beneficiaries according to the budget. Therefore, it is possible that the coverage of this program reached 100% or even more.

32 www.ygdi.org, “JPK Gakin”, May 2011. 33 Among others, dwell in a house with floor area <8m2/person, no toilet facility, no electricity, the earning of

household head < Rp600,000, etc.

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b. Scholarship for Poor Students at Madrasah (MI/MTs/MA)

116. The description of this program is similar to the description of the same program which is conducted by the Ministry of Education. However, this program is given only to Islamic schools at all levels, from elementary to senior secondary high school. This program aims to provide scholarships for poor students in Islamic schools (MI, MTs, and MA), so that they can continue pursuing higher education. 117. The eligibility criteria in receiving this scholarship is being a poor student living in a poor household as set by the BPS standard for enrollment in Islamic schools. The scholarship budget for Islamic Schools in 2009 is Rp 949.6 billion or $90.87 million, covering 1.59 million students. The estimate using the 2009 SUSENAS of the number of Islamic school students belonging to a household living below the poverty line is 545,622 students. This estimate shows that the coverage of scholarship for poor students is far above 100%.

8. Being Implemented by Ministry of Public Housing

a. Assistance for Housing Construction & Renovation

118. This program from the Ministry of Public Housing is called assistance or bantuan. The implementation of this program is varied from one local government to another. This assistance can be given in the form of a transfer, low-interest credit or stimulating funds (dana bergulir), with the recipient obliged to pay back the money to be used by others for their housing needs. This ensures that the flow of funds do not stop at the first person. The program is directed towards low income society and gives assistance to build, renovate, or maintain homes. This program under the criteria of social protection because the program falls within the category of social budget (belanja sosial)34, not income generating budget, and it is also termed as bantuan sosial or social assistance. 119. The subsidy allocation for public housing increased from Rp800 billion in 2008 compared to Rp2.5 trillion in 2009.35 In fulfilling the housing construction for the low income society, the Ministry of Public Housing provided special grants in 2009 called stimulation funds for as much as Rp 142,852 billion. This expenditure is aimed to build homes, maintain existing homes, or renovate and maintain environment infrastructures. This program only includes budget for housing construction and renovation, not for the infrastructures and untilities in surrounding areas. The budget specific for this program in 2009 is Rp106.85 billion or $10.2 million for 73,947 beneficiaries. D. Labor Market Program

1. Fiscal Stimulus Package as Implemented by Various Ministries

120. In response to the consequences of the global financial crisis, the Government of Indonesia announced a Fiscal Stimulus package to maintain its domestic consumption. The aim of this stimulus package is to moderate the effect of the global financial crisis on unemployment 34 Regulation of General Directorate of Treasury of Ministry of Finance No. Per-49/PB/2006 regarding Tata Cara

Pembayaran Bantuan Sosial Stimulan Perumahan Swadaya bagi Masyarakat Berpenghasilan Rendah [regarding Social Assistance of Stimulating Funds for Housing for Low Income Earning Society].

35 (www.tekno.kompas.com, “Menegpera: Subsidi Perumahan 2009 Rp 2,5 Triliun” [Minister of Public Houseing: Housing Subsidy in 2009 is Rp2.5 billion], Friday, 13 March 2009).

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and underemployment, particularly for the poor and vulnerable by performing labor-based (LB) infrastructure investment strategies. It is also for the purpose of the Government’s long-term investment policies to overcome unemployment issues and support the increase of Indonesia’s economic growth. The Government of Indonesia approved a fiscal stimulus package of Rp3.3 trillion or $8.1 billion in February 2009, which is roughly equivalent to 1.4% of Indonesia’s GDP. About 83.8% of the allocated budget was realized by the end of fiscal year’s 2009 budget cycle.36 121. The Fiscal Stimulus Package (FSP) focuses on 3 things: (i) maintaining and improving people’s purchasing power through personal income tax cuts and value added tax cuts; (ii) preventing employee's contract termination and improving on product competitiveness through employee income tax cuts, corporate income tax cuts, value added tax cuts, tariff import tax cuts, subsidies, and transfers to state-owned enterprises; iii) investment in infrastructure, such as infrastructure in public works, transport, energy and mineral resources, public housing, trade infrastructure, and agricultural infrastructure, in order to cope with unemployment issues. The ministries are involved in the implementation of this program and the budgets according to the parliament are as follows: (i) Ministries of Public Works (Rp5.6 trillion); (ii) Public Transportation (Rp2 trillion); (iii) Energy and Mineral Resources (Rp1.3 trillion); (iv) Public Housing (Rp400 billion), Agriculture (Rp750 billion); (v) Trade, Cooperatives and Small and Medium Business (Rp590 billion); and (vi) Manpower and Transmigration (Rp400 billion)37.

122. The FSP is targeted for those who are affected by the financial crisis such as workers in Indonesia who were laid off, returning overseas workers, and people who lost their micro-scale businesses38. For the purpose of SPI calculation, the appropriate FSP program to be included is the last program of investment in infrastructure since this program is directed towards the labor market creation program aiming to prevent vulnerable and poor people from losing their income as well as purchasing power. Infrastructure investment is the main component of the fiscal stimulus package in 2009. The fiscal stimulus package (FSP) announced by the Government of Indonesia included infrastructure investment amounting to Rp12.2 trillion in the fiscal year 2009, with 88.7% or Rp10.8 trillion of expenditure spent.

123. The Rp10.8 trillion worth of infrastructure component of the FSP is estimated to have generated 287,060 jobs. In terms of construction by type, 9% of these jobs were created by labor-intensive road construction works and only 1.7% by irrigation-related works. The largest employment effect of the spending was found in crops farming, which generated about 82,000 labor places or 28.5% of the additional employment originating from the infrastructure component of the FSP. The estimated amount of budget directly spent on the workers is about Rp370.89 billion or $35.49 million39. The coverage of this program is very high for the whole

36 Chatani, Kazutoshi and Christoph Ernst. 2011. p.1. 37 http://www.portalhr.com/people-management/learning-development/stimulus-fiskal-juga-dialokasikan-untuk-balai-

latihan-kerja/. ‘Stimulus Fiskal Juga Dialokasikan untuk Balai Latihan Kerja’ [Fiscal Stimulus is Also Allocated for Training], Thursday, 26 February 2009. Several ministries that are not specifically mentioned in this article but most likely also involved in the FSP are Ministry of Ocean and Fisheries Affairs, Ministry of Health, and Ministry of State-Owned Company (Surat Edaran Menteri Keuangan Indonesia SE-883/MK.02/2009).

38 Ministry of Manpower and Transmigration (2009), ‘Program Stimulus Fiskal Tahun 2009 Bidang Ketenagakerjaan’ [Fiscal Stimulus Program for Manpower in 2009] http://www.depnakertrans.go.id/news.html,235,naker.

39 The calculation is based on the information from the Performance Accountability Report of the Ministry of Manpower (LAKIP) and the ILO Report from Chatani and Ernst (2011). First, the budget of FSP per worker is calculated based on LAKIP (187,253,926,090/103,554=Rp1,808,273.23). This budget per worker is then assumed

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economy which is more than 120% or 287,060 jobs created to cover 237,000 job losses due to the financial crisis. Job creation without including crops farming is 205,109 jobs, with 86.5% coverage. 124. Based on the ILO report, Table 3.5 presents the estimated proportion of employment creation by gender. The share of the employment for females for construction is very low at 2.4%. Since the employment share for the construction is the target of the FSP, a 2.4% share is used to estimate the expenditure by gender in the SPI calculation.

Table 3.5: Employment Shares Estimated as the result by Location and Gender Employment Urban Rural Total

Share Male Female Male Female Male Female Total

Economy wide 25.4%

15.6% 36.9% 22.1% *62.3% *37.7% 100.0%

Construction 46.9% 1.6% 50.8% 0.8% *97.7% *2.4% **100.1%

Source: DySAM output cf. Chatani and Ernst (2011) * mistakes found are corrected by the authors of this report ** due to number rounding up.

2. Being Implemented by Ministry of Manpower and Transmigration

a. Implementation of Community Based Training Program (Fiscal Stimulus and Social Assistance)

125. This program is a community based training program funded by the fiscal stimulus package implemented by the Ministry of Manpower and Transmigration. The objective is that the fund is not just used to create jobs but also to improve the skills of the people to make them able to get jobs. It is unclear, however, what are the eligibility criteria to be included in this community based training program. 126. The budget set for this program in 2009 is Rp118 billion or $11.3 million. The target of the Ministry of Manpower in 2009 was actually to cover training for 53,669 people in 33 provinces. However, it was actually spent only on 39,179 people which means the ministry covered 73% of their target.

IV. SOCIAL PROTECTION INDEX AND ITS DISAGGREGATIONS

127. The revised Social Protection Index (SPI) is a unitary indicator that can be disaggregated for analytical purposes. 128. The revised SPI is calculated by Total Social Protection Expenditures per Total Potential Beneficiaries by 25% of the GDP per capita (representing average poverty line expenditures). In other words, the total social-protection expenditures spread across all potential beneficiaries are compared to poverty-line expenditures in each country.

to be the amount spent for every worker. The total budget then become 205,109 jobs times Rp1,808,273.23 which is equal to Rp370.89 billion.

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129. The revised SPI index can be disaggregated into two components, one for the ‘depth’ of coverage and the other for the ‘breadth’ of coverage of social protection programs. The first indicator is the Total Social Protection Expenditures divided by the Total Actual Beneficiaries (i.e., the average size of benefits actually received or ‘depth’). The second indicator is the Total Actual Beneficiaries divided by the Total Potential Beneficiaries (i.e., the proportion of potential beneficiaries actually reached or ‘breadth’). 130. The revised SPI can also be disaggregated by the major categories of social protection programs: social insurance, social assistance and labor market programs. When the total expenditures per total potential beneficiaries for each major program are weighted in population terms, the program SPIs add up to the total SPI. 131. Furthermore, the revised SPI can also be disaggregated by expenditures per potential poor and non-poor beneficiaries. Finally, gender-wise data allows the disaggregation of expenditure by gender. 132. The derivation of the SPI for poor and non-poor and the SPI women and men used poverty and gender targeting rates. The rates are based on the results of household surveys; administrative reports of social protection implementing agencies; and in some instances, on the professional judgment of the consultants. A. Basic Statistics

Table 4.1: Basic Statistics for 2009

Statistic Unit 2009 Value Source of Data Notes GDP (current prices) Billion 5,603,871 BPS calendar year GDP per capita (current prices)

Units 24,261,805 BPS calendar year

GNI (current prices) Billion 5,192,819 BPS calendar year Total Population Thousand 230,632.7 BPS mid year population

estimate Number of unemployed/ underemployed

Persons 40,532,551 BPS as of August

Population aged 60 years and over

Thousand 18,425.0 BPS Mid-year population estimate

Employed Population Persons 104,870,663 BPS as of August Population living below national poverty line

Thousand 32,530 BPS as of March

Population affected by natural disasters

Persons 1,284,800 MSW the total for 2009

Disabled population Persons 1,541,942 MSW calendar year Children aged 0 to 14 years

Thousand 61,016.5 BPS Mid-year population estimate

Per capita poverty line expenditure (annual)

Units 200,262 BPS as of March 2009

Average household size Units 4 BPS calendar year Exchange rate US$1= 10,450.33 Bank Indonesia calendar year GDP = gross domestic product, GNI = gross national income

Source: Country Sources, 2011

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B. Social Protection Expenditure

133. The total of social protection expenditure in 2009 is Rp63.95 trillion or 1.14% from the total GDP. This result is close to ILO estimates of 1.4% in 2003, as stated in the ILO World Social Security Report of 2010-201140. Thus, this result is the best estimate from the actual expenditure of social protection programs in Indonesia which are based on direct statistical report from each ministry or institution, and from the Ministries’ Performance Accountability Report (LAKIP). However, there may be cases wherein the figures are underestimated due to difficulties in data collection, and lack of accurate recording of social assistance activities.

Table 4.2: SP Expenditure by SP Category SP Category 2009 Annual

Expenditure (Rupiahs)*

% Distribution of Expenditures

Pensions 5,789,841,000,000 8.8% Health Insurance 4,759,588,095,397 7.2% Unemployment Benefit 0 0.0% Other Social Insurance 10,477,110,201,438 15.9% ALL Social Insurance 21,026,539,296,835 31.9% Assistance for Elderly 56,004,314,000 0.1% Health Assistance 5,013,000,000,000 7.6% Child Protection 22,286,442,058,000 33.8% Disaster Assistance and Relief 314,557,163,000 0.5% Other Social Assistance (e.g. disability benefits)

14,767,242,181,000 22.4%

ALL Social Assistance 42,437,245,716,000 64.4% Labour Market Programs 2,385,785,761,993 3.6% TOTAL SP EXPENDITURE 65,849,570,774,828 100.0%

GDP 5,603,871,200,000,000 SP Expenditure Indicator 1.2%

Source: Consultant’s estimates, 2011

134. Expenditure for social insurance is quite large, covering 32.88% of all social protection expenditure, and comprising only 0.38% of the 2009 GDP. Table 4.3 shows that in 2009, total expenditure for social insurance is Rp21.03 trillion, mainly contributed by PT Taspen, PT ASKES and PT ASABRI at Rp 13.96 trillion; while expenditure by PT Jamsostek is only Rp7.06 trillion. Expenditure for formal employee by PT Jamsostek is quite small with 33% total workers or approximately 33 million formal workers. Social insurance in Indonesia mainly covers those working in formal sectors, government civil servants, military personnel and their families. Therefore, many populations remain excluded from social insurance, such as informal sector workers or self employed persons. In order to address this gap, the government provides social assistance to those who are not covered by social insurance.

40 http://www.ilo.org/public/english/protection/secsoc/downloads/policy/wssr.pdf

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Table 4.3: Expenditures of Social Insurance Programs, 2009

Social Insurance Program Implementing

Agency Detailed Category

Expenditure (Rp Millions)

Saving and Insurance for Civil Servants PT. TASPEN OSI 9,623,158

Insurance for Armed Forces Members PT. ASABRI OSI 245,633

Health Insurance for Civil Servants and the public

PT. ASKES HI 4,094,008

Old Age Security PT. JAMSOSTEK

PEN 5,789,841

Occupational Accidents Benefit PT. JAMSOSTEK

OSI 343,436

Death Insurance PT. JAMSOSTEK

OSI 255,805

Health Services Insurance PT. JAMSOSTEK

HI 665,580

Independent Workers Insurance PT. JAMSOSTEK

OSI 9,080

Total 21,026,539 Source: Country Sources, 2011 135. Social Assistance consists of assistance for the elderly, health assistance, child protection, disaster assistance relief and other social assistance; and contributes to the largest share of social protection expenditure in 2009 at 66.36%. The biggest component of this social assistance expenditure is child protection at Rp22.29 trillion or 34.85% of total social protection expenditure. These were targeted to provide school operational assistance at the elementary and junior high schools (Rp16.0 trillion); assistance for operational quality management at senior high schools (Rp618.1 billion); and scholarship for poor students in primary and secondary schools (Rp1.5 trillion). Also, there are expenditures from the Ministry of Religious Affairs (MORA) with schemes similar to those implemented by the MONE, but this is targeted to Moslem schools under the MORA. The amount is Rp3.97 trillion in 2009. In addition, the MOSW also impelements social assistance for children with Rp188.65 billion in 2009.

Table 4.4: Expenditures of Social Assistance Programs, 2009

Social Assistance Program Implementing

Agency Detailed Category

Expenditure (Rp Millions)

Family Empowerment MSW OSA 11,461

Remote Indigenous Community Empowerment

MSW OSA 21,159

Empowerment of the Poor MSW OSA 176,782

Social Assistance to Patriots MSW OSA 35,041

Rehabilitation and Social Protection for Children

MSW CP 188,646

Social Services for Elderly MSW AE 56,004 Social Rehabilitation for Persons with Disabilities

MSW OSA 86,565

Social Rehabilitation for the Socially Vulnerable

MSW OSA 13,416

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Social Assistance Program Implementing

Agency Detailed Category

Expenditure (Rp Millions)

Social Rehabilitation for the Drugs Addicts MSW OSA 10,917 Social Protection for Natural Disaster Victims

MSW DA 201,032

Social Protection for Social Disaster Victims

MSW DA 113,525

Social Protection for the Migrant Workers and Victims of Violence and Abuse

MSW OSA 20,520

Assisting the Collection and Management of Social Funds (Askesos)

MSW OSA 7,262

Program Keluarga Harapan (PKH) or the Conditional Cash Transfer (CCT) - the Family Hope Programme

MSW OSA 1,111,450

Social Assistance for Coastal Family MOFA OSA 130,917 School Operational Assistance (BOS) for Elementary and Junior High School Level

MONE CP 16,036,113

Assistance for Operational Quality Management at Senior High School level

MONE CP 618,112

Scholarship for Poor Students at Elementary, Junior and Senior High School Level

MONE CP

1,474,565 Development of Food Self-Sufficiency Regions

MOA OSA 34,900

Rice for the Poor BLA OSA 13,000,000 Social Health Insurance (Jamkesmas) including Free Birth Delivery for All

MOH HA 4,600,000

Health Care Security for Poor Family (JPK Gakin)

DKI Jakarta Province Government

HA

413,000 School Operational Assistance (BOS) for Madrasah (MI/MTs/MA)

MORA CP 3,019,389

Scholarship for Poor Students at Madrasah (MI/MTs/MA)

MORA CP 949,617

Assistance for Housing Construction & Renovation

MOPH OSA 106,852

Total 1,564,688 Source: Country Sources, 2011 136. The next biggest expenditure is social assistance in terms of RASKIN or rice for the poor operated by the BULOG (Board of Logistics Affairs), which is Rp13 trillion in 2009. This program subsidized the price of rice to only Rp1,600 instead of Rp5,913.5/kg, with the government spending Rp4,313.5/kg of rice. The impact is stabilizing the market price and therefore, there is a multiplier effect. The beneficiaries are not only the recipients of the RASKIN program, but also society through the maintenance of purchasing power. 137. Health assistance expenditure is equivalent to Rp5.01 trillion distributed through JAMKESMAS and JPK Gakin in 2009. According to the Ministry of Ocean and Fisheries Affairs, social assistance for Coastal Families is equivalent to Rp130.92 billion; and social assistance for improving food-self sufficiency in related regions from the Ministry of

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Agriculture is equivalent to Rp34.9 billion in 2009. In addition, the Ministry of Public Housing spent Rp106.85 billion in terms of assistance for housing construction and renovation.

Table 4.5: Expenditures of Labor Market Programs, 2009

Labor Market Program Implementing

Agency Detailed Category

Expenditure (Rp Millions)

Social Institutional Community Empowerment

MSW LMP 1,896,801

Implementation of Community Based Training Program (Fiscal Stimulus and Social Assistance)

MOMT LMP 118,092

Fiscal Stimulus Package MOMT and Other Ministries

LMP 370,893

Total 2,385,786 Source: Country Sources, 2011 138. The labor market program indicator is mainly found in the social institutional community empowerment. The fiscal stimulus package is the next big program, specifically the labor-based infrastructure investment strategies to ease the impact of the global financial crisis in 2008. However, the portion for labor placement is quite small relative to the total amount of the fiscal stimulus. The Rp10.8 trillion worth of infrastructure component of the FSP is estimated to have generated 287,060 jobs; 9% are absorbed in road construction works, 1.7% in irrigation related work; and, 28.5% in crops farming with 82,000 job placements. C. Social Protection Beneficiaries

139. Aside from financing social assistance, equally important is the use of social assistance expenditure. Is it distributed to the target beneficiaries as planned? Furthermore, if most of the social assistance expenditure is targeted to the poor and vulnerable population, the question arises on how to find the poor and the vulnerable people in the actual implementation at the grassroots level. The issue of adverse selection (not appropriate target beneficiaries) or moral hazard on the side of the beneficiaries might occur. Thus, implementing social assistance should be based on the concept of good governance and accountability.

Table 4.6: Beneficiaries of Social Insurance Programs, 2009

Social Insurance Program Implementing Agency Detailed Category Beneficiaries

(000s) Saving and Insurance for Civil Servants

PT. TASPEN OSI 6,314

Insurance for Armed Forces Members

PT. ASABRI OSI 1,776

Health Insurance for Civil Servants and the public

PT. ASKES HI 16,313

Old Age Security PT. JAMSOSTEK PEN 8,496

Occupational Accidents Benefit

PT. JAMSOSTEK OSI 8,496

Death Insurance PT. JAMSOSTEK OSI 8,496

Health Services Insurance PT. JAMSOSTEK HI

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6,274

Independent Workers Insurance

PT. JAMSOSTEK OSI 223

Total 56,388 Source: Country Sources, 2011

140. As shown in Table 4.6, Health Insurance for Civil Servants and the Public covered the most number of beneficiaries in 2009. The figure comprise almost one third of all social insurance beneficiaries.

141. About 32 million persons were covered by PT Jamsostek for the formal and informal active workers and their families (members and endured) while around 24 million were covered by the schemes of PT Taspen, PT ASABRI and PT. ASKES.

Table 4.7: Beneficiaries of Social Assistance Programs, 2009

Social Assistance Program Implementing

Agency Detailed Category

Beneficiaries (000s)

Family Empowerment MSW OSA 94

Remote Indigenous Community Empowerment MSW OSA 41

Empowerment of the Poor MSW OSA 371

Social Assistance to Patriots MSW OSA 2

Rehabilitation and Social Protection for Children MSW CP 169

Social Services for Elderly MSW AE 10 Social Rehabilitation for Persons with Disabilities

MSW OSA 34

Social Rehabilitation for the Socially Vulnerable MSW OSA 7

Social Rehabilitation for the Drugs Addicts MSW OSA 13

Social Protection for Natural Disaster Victims MSW DA 1,050

Social Protection for Social Disaster Victims MSW DA 235

Social Protection for the Migrant Workers and Victims of Violence and Abuse

MSW OSA 33

Assisting the Collection and Management of Social Funds (Askesos)

MSW OSA 51

Program Keluarga Harapan (PKH) or the Conditional Cash Transfer (CCT) - the Family Hope Programme

MSW OSA 2,906

Social Assistance for Coastal Family MOFA OSA 252

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Social Assistance Program Implementing

Agency Detailed Category

Beneficiaries (000s)

School Operational Assistance (BOS) for Elementary and Junior High School Level

MONE CP 26,867

Assistance for Operational Quality Management at Senior High School level

MONE CP 5,771

Scholarship for Poor Students at Elementary, Junior and Senior High School Level

MONE CP 3,085

Development of Food Self-Sufficiency Regions MOA OSA 244

Rice for the Poor BLA OSA 18,500 Social Health Insurance (Jamkesmas) including Free Birth Delivery for All

MOH HA 32,530

Health Care Security for Poor Family (JPK Gakin)

DKI Jakarta Province

Government

HA 644

School Operational Assistance (BOS) for Madrasah (MI/MTs/MA)

MORA CP 6,286

Scholarship for Poor Students at Madrasah (MI/MTs/MA)

MORA CP 1,588

Assistance for Housing Construction & Renovation

MOPH OSA 74

Total 100,857 Source: Country Sources, 2011

142. Child protection programs benefited more than 43 million children; health assistance programs covered more than 33 million persons; other social assistance programs reached more than 22 million persons; disaster assistance benefited more than a million; and, assistance to elderly reached 10,000 older people. 143. The largest number of beneficiaries that received social assistance is the MONE and the MORA programs that keep children in school (43.5 million children). The MOH covers health expenses for the poor and the near poor (32.5 million people), and the Board of Logistics (BULOG) distributes rice for the poor (18.5 million people).

Table 4.8: Beneficiaries of Labor Market Programs, 2009

Labor Market Program Implementing

Agency Detailed Category

Beneficiaries (000s)

Social Institutional Community Empowerment MSW LMP 2,401

Implementation of Community Based Training Program (Fiscal Stimulus and Social Assistance)

MOMT LMP 39

Fiscal Stimulus Package MOMT and Other Ministries

LMP 205

Total 2,646

36

Source: Country Sources, 2011

144. The 244,288 unemployed persons due to the 2008 global financial crisis were assisted by the Ministry of Manpower and Transmigration. This was implemented through the Community Based Training Program involving 39,179 persons; and 205,109 persons as an impact of employment creation, were funded by the fiscal stimulus package.

V. ANALYSIS OF COUNTRY RESULTS

145. In this chapter, the basic structure of the revised Social Protection Index (SPI) is presented and explained. The detailed formula of SPI can be found in Appendix 1. The basic information needed for the calculation of the revised SPI are mainly the social protection expenditures, the Potential Beneficiaries or the reference population and the poverty line expenditures (25% of GDP per capita). For the SPI disaggregation information on Actual Beneficiaries (AB) of each SP expenditure, the proportions of the SP expenditures that are directed for the poor for the poverty-focus indicator and the proportions of the SP expenditures that are directed for female beneficiaries for the gender-focus indicator, are also needed. 157. The revised SPI has three major disaggregations of SPI: (i) depth and breadth; (ii) the three categories of social protection programs (i.e., social insurance, social assistance, and labor market programs); and (iii) expenditures directed to the poor and non-poor, and to male and female beneficiaries. A. Disaggregation by Social Protection Category

Table 5.1: Disaggregation by Category

Social

Insurance Social

Assistance Labor Market

Programs All SP

Programs Total SP Expenditure (Million IDR) 21,026,539 42,437,246 2,385,786 65,849,571 Beneficiaries (000s) 56,388 100,857 2,646 159,891 Reference Population (000s) 123,296 96,373 26,218 245,887 25% of GDP per capita 6,065,451 6,065,451 6,065,451 6,065,451 SPI 0.014 0.028 0.002 0.044

Source: Consultant’s estimates, 2011. 146. The SPI can also be disaggregated into three components: Social Insurance, Social Assistance, and Labor Market programs. Based on the formula, the total SPI is an addition of the SP of each of the programs. For Indonesia, the total SPI 0.044 consists of 0.014 for social insurance; 0.028 for social assistance; and 0.002 for labor market programs. The component of SPI is higher for social assistance. 147. The total SPI implies that the average per capita social protection expenditure is about 4.4% of the poverty line expenditures (set at 25% of GDP per capita). Per capita expenditures on social assistance are about 2.8%; while social insurance and labor market programs are 1.4% and 0.2%, respectively.

37

B. Disaggregation by “Depth” and “Breadth”

Table 5.2: Disaggregation by Depth and Breadth

Social Insurance Social Assistance Labor Market Programs All SP Programs

Depth 0.061 0.069 0.149 0.068 Breadth 0.229 0.410 0.011 0.650 SPI 0.014 0.028 0.002 0.044

Source: Consultant’s estimates, 2011. 148. ‘Depth’ can be interpreted as the percentage of social protection expenditures for received by each actual beneficiary to the poverty-line expenditure. ‘Breadth’, on the other hand, measures the coverage of social protection programs, which is the proportion of the actual beneficiaries with the potential beneficiaries of social protection. 161. The depth of SPI for Indonesia is 0.068 or the overall social protection expenditure per actual beneficiary as a percentage of the regional poverty line. The breadth (0.650) is higher than depth; indicating that there is a wide coverage (65.0%) of social protection programs while the benefits are relatively small, having only about 6.8% of the poverty line expenditures. The limitation of the breadth value lies in the possibility of double counting of recipients, receiving various types of social assistance. 149. The SPI breadth is highest for social assistance programs and lowest for labor market programs. Breadth is the total of actual beneficiaries divided by potential beneficiaries (i.e., reference population). The highest coverage is social assistance programs, followed by social insurance programs and then by labor market programs. Yet, there is high possibility of overlap of beneficiaries in social assistance programs. Higher number of beneficiaries in social assistance programs does not necessarily mean more people receive benefits from these programs. It is possible that the same person receives different types of benefits given that the person meets the criteria for beneficiaries. Another explanation is that some people who are not eligible to receive assistance programs become beneficiaries of these assistance programs. Thus, the breadth of social assistance programs should be interpreted with caution. The breadth of labor market programs is very low because the potential beneficiaries are all those who are underemployed, about 31,569,934 individuals. Thus, social protection for about 2,645,715 persons is very low compared to the potential beneficiaries. There is a need to find a more effective and efficient way to create jobs, especially for those who are unemployed and vulnerable41.

C. Disaggregation by Poverty

150. Another disaggregation is based on poverty status with a similar interpretation of the SPI for each program.

41 It should be noted that the labor market programs in this calculation does not include The National Community

Empowerment Program or Program Nasional Pemberdayaan Masyarakat Mandiri (PNPM – Mandiri) because it is considered a program in the form of area development and also some of the budget goes in the form of micro-credit. This program is for the poor and has a high labor market creation component in the program. According to Papanek and Basri (2009), in 2008, PNPM-Mandiri absorbed 14.4 million workers directly.

38

Table 5.3: Disaggregation by Poverty Status Poor Non-Poor

SP Expenditure (Million IDR) 9,330,789 56,518,782 Reference Population (000s) 245,887 245,887 25% of GDP per capita 6,065,451 6,065,451 SPI 0.006 0.038

151. The SPI for the non-poor (0.038) is higher than the SPI for the poor (0.006), indicating a higher expenditure diverted to non-poor beneficiaries. It means that overall, the total SP expenditure is much higher for the non-poor compared to the poor. It may also indicate that the poor people who really need social protection are under covered; or, some poor people do not receive from the existing social protection programs.

152. Another possible explanation of the lower component of SPI for the poor is that the vulnerable groups are not always poor or have per capita expenditures falling below the national standard poverty-line expenditure from BPS. The near poor is also sometimes included as part of the vulnerable groups to be targeted42. The Development of Food Self-Sufficiency Regions, for instance, is targeted only to 45-50% of the poor.

153. To calculate SPI by poverty status, information on the amount of social protection expenditures actually received by the poor is needed. The information collected directly from institutions implementing social protection programs in Indonesia is mostly unavailable for this purpose. In order to determine the social protection expenditures received by the poor, in most cases, estimates from the 2009 Indonesia National Socio-Economic Survey (SUSENAS) combined with other necessary and available data were used. SUSENAS is a national survey conducted by BPS-Statistics Indonesia every year to collect information on the education; health; housing; other social and economic conditions; social and cultural activities; and, household consumption, expenditure and income (BPS-Statistics Indonesia, 2009). SUSENAS also provides information on the number of poor households and also gender.

D. Disaggregation by Gender

154. Because the sample of SUSENAS is designed to be nationally representative, it is possible to use this data to estimate the total number of population with certain characteristics. Sample weights were created by BPS for this purpose. 155. For purposes of estimation, it is assumed that the distribution of each social protection expenditure by poverty status and gender follow the distribution of the recipients and beneficiaries of each of the social protection programs.

156. In some cases, the use of the 2009 SUSENAS is quite straightforward. In other cases, other types of information are needed to determine the proportions of SP expenditures by gender. For several programs, direct information from the reports of ministries, institutions, websites, newspapers, articles, or results of resource person interviews are used.

Table 5.4 Disaggregation by Gender

42 The Rp1,000 difference in per capita expenditure above the poverty line can already make an individual

considered not poor while in reality his or her expenditure is only Rp1,000 or about 10 cents higher.

39

Table 5.4: Disaggregation by Gender Women Men SP Expenditure (Million IDR) 30,261,374 35,588,197 Reference Pop (000s) 245,887 245,887 25% of GDP per capita 6,065,451 6,065,451 SPI 0.020 0.024

157. The gender disaggregation of SPI in Table 5.4 shows that the SPI for men is higher than the SPI for women. The indices indicate that women benefited slightly less from the social protection program than men. This is possible since some programs are targeted for head of households or breadwinners, usually males. Nevertheless, in most programs, the proportion of expenditures for females is about 50%. The highest proportion of expenditure for females is in the MOSW program for the victims of violence and abuse; since most of the victims of violence and abuse are women. On the other hand, the Fiscal Stimulus program or labor market program has the lowest proportion of females as beneficiaries since it is a program that creates jobs through infrastructure building. These jobs are usually for males. To create jobs that have less gender bias, labor market programs that can equally protect vulnerable male and females should be considered.

VI. CONCLUSION AND RECOMMENDATION

158. Based on the amount of expenditure and number of beneficiaries, the calculation of depth of the SPI reveals that overall depth is 0.068. This shows that the average actual expenditure in general is 6.8% of the poverty line, measured by 25% of the GDP or Rp6 million. Thus, the overall expenditure for social protection is far below the poverty line. Even in calculating depth based on the BPS poverty line, the percentage is still below the poverty line. The SPI depth for social assistance is only slightly above the social insurance. Although this should be interpreted cautiously due to the double counting problem of beneficiaries; it highlights the importance of increasing social assistance expenditure due to the large number of poor people in Indonesia needing basic assistance. 159. The lessons learned from this research are that (i) the difficulties in data collection can be simplified if Indonesia has a unified social protection system; (ii) the current fragmented social protection program and indication of overlaps lead to indication of inefficiencies; and (ii) the monitoring and assessment of all existing programs is needed to determine program effectivity (i.e the efficiency and distribution of resources to the target population). These suggestions will be easier to implement if the Government also develops instruments to monitor and evaluate social protection programs, especially the social assistance program funded by the Government. 160. To avoid possibilities of overlap among the existing social protection programs, it is ideal to develop a program that is unified, systematic, and incorporates the standard formatting of an SP Program. A unified system of social protection, whether social insurance or social assistance, will lead to easier targeting of beneficiaries and minimize the risk of overlapping. 161. These reforms can be more easily conducted if the Government agrees to establish a single carrier of social protection such as an implementing body that merges the existing ‘formal’ social insurance administering bodies. Alternatively, in addition to the existing four implementing

40

agencies, a new body that would cover people excluded from the existing formal social protection programs can be established. It is hoped that the new law of BPJS mandated by the 2004 Law of NSSS No. 40 is implemented soon. 162. Furthermore, social assistance should be carefully planned; targeting appropriate beneficiaries; and, avoiding overlapping beneficiaries that receive various social protection programs at the same time. 163. A standard format of recording and reporting social protection programs is an important instrument to monitor and evaluate effectiveness and efficiency the programs. A database of social protection, disaggregated by sex and poverty status, is needed to facilitate program development and improvement. It is important to increase advocacy of stakeholders on social protection issues, especially those in the executive and legislative bodies of government. A single identity card is ideal to overcome the problem of registering potential members, implementing mobility of social protection programs. 164. Labor market creation is focused on the development of labor intensive employment creation and seen to mitigate job losses due from the impact of global financial crisis. More efforts should be given on employment creation through appropriate macroeconomic policy that induces sustainable growth.

165. More importantly, measurement of the existing social protection index is suggested to be reviewed, revised and updated over time. This is useful in helping the government to monitor effectiveness and efficiency of social protection programs.

41

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44 A

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47

the

48 Appendix 2

LIST OF RESOURCE PERSONS

Agencies/ Ministries

Title (position and directorate)

Type of data gathered (short description)

1 Ministry of Social Welfare

1) Head of Planning Bureau *Yearly budget

*Beneficiaries (from LAKIP/annual report and interview)

2) Planning Bureau

3) Planning Bureau

4. Head of Sub-directorate of Programme and Reporting, Secretary Directorate General Social Empowerment and Poverty Reduction

2 Ministry of Ocean and Fisheries Affairs

Head of Science and Technology Implementation division, Directorate of Empowerment of the Coastal Society

Budget and beneficiaries of Social Assistance (BanSos)

3 Ministry of Education

Head of Department of Planning Budget and beneficiaries for social protection programs in the MoE

4 Ministry of Agriculture

1. Department of Planning, Food Security Agency

Budget and beneficiaries of social protection programs in the MoA 2. Department of Evaluation, Food

Security Agency

5 BAPPENAS (National Development Planning Agency)

Directorate of Social Protection and Welfare

Budget and beneficiaries of all social protection programs

6 Ministry of Health Head of Subdivision of System Information, Monitoring, and Evaluation

Budget and beneficiaries of Jamkesmas

7 Ministry of Finance

Directorate of Budgetary 1 and 2, Directorate General of Budget

1) Budget and beneficiaries of Jamkesmas, BOS and BOMM

2) Budget and beneficiaries of social protection programs in the Ministry of Religion Affairs

8 ASABRI Director of Human Resources and General Affairs

Beneficiaries of ASABRI