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Distributing Social Assistance Using Fintech, Social Minister: To Ease Control and Supervision

Distributing Social Assistance Using Fintech, Social Minister: To Ease Control and Supervision
Writer :
Hamdan
Translator :
Nia Annisa

JAKARTA (24 June 2021) - The Ministry of Social Affairs is preparing innovations in the distribution of social assistance using financial technology (fintech).

This innovation is to accelerate and facilitate the distribution of social assistance, as well as facilitate monitor and supervision.

"According to the Presidential Regulation on Social Assistance, the distribution is through State Bank Association (Himbara). However, on its developments it is no longer possible to do it manually or without technological assistance," said Social Minister Tri Rismaharini after receiving an audience with the Fintech Association in Jakarta, Thursday (24/6/2021).

Compared to technology-based tools, the current manual processes are considered to have many shortcomings, especially for program supervision and control.

"Manual process has many shortcomings and is not right on target (for the Beneficiaries)," said the Social Minister.

The Ministry of Social Affairs' innovation by using fintech in the distribution of social assistance is a system that is used almost all over the world.

"We will use fintech. Currently, almost all over the world uses digital-based finance," she said.

Fintech innovation will make the assistance distribution not only faster and more accurate, but also more effective and efficient.

"Obviously it will have great impact on control and supervision," said the Social Minister.

At the beginning of her appointment as Social Minister, the President showed her the results of a second survey on the use of social assistance by beneficiaries.

The results of the second survey using fintech can detect beneficiaries who spend social assistance outside the provisions.

“For example, if the software does not sell cigarettes, then no one can buy cigarettes. This is what I mean as easy control and supervision," she said.

For the distribution of social assistance using fintech, the Ministry of Social Affairs will cooperate with Bank Indonesia (BI) and the Financial Services Authority (OJK).

"We will implement the fintech as soon as possible and hopefully it can be launched on August 17th," she concluded.

Also present at the event were the Director General of Social Protection and Security, Pepen Nazaruddin; Director General of Poor Handling, Asep Sasa Purnama; Chairman of Aftech, Pandu Sjahrir; CEO of Veri Jelas, Alwin Kiemas; and the Chief Executive of Fintech, Mercy Simorangkir.

Public Relations Bureau
Ministry of Social Affairs
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