MoSA is No Longer Delivered Social Assistance in the form of Goods

JAKARTA (October 13, 2023) – Ministry of Social Affairs has no longer used the mechanism of goods assistance through e-warong for Sembako Card Program/ Non-Cash Food Assistance (BPNT), since January 2021. The assistance is delivered with bank transfers to the accounts of Beneficiary Families (KPM) through the State-Owned Bank Association or Himbara banks.

This policy was taken based on Presidential Regulation Number 63 of 2017 concerning on Distribution of Non-Cash Social Assistance. It stated in Article 5 paragraph (1) related to the distribution mechanism can be done by (d) withdrawing money and/or purchasing goods/services using funds from the Social Assistance Beneficiary's account.

In addition, the Ministry of Social Affairs is also guided by the Recommendation Letter from Commission VIII of the House of Representatives, due to the many irregularities during the distribution of the BPNT program. The government and Commission VIII agreed that the distribution of social assistance will then be carried out in the form of cash through Bank Himbara, and can be withdrawn through the ATM account of each Beneficiary Family (KPM).

“MoSA is no longer distributed Food Assistance in the form of goods, since January 2021. So, if there is social assistance distribution in the form of goods or basic food necessities, it is not from MoSA,” said Secretary General of MoSA Robben Rico in Jakarta on Friday (13/10).

This distribution through bank transfer can provide flexibility for KPM to buy goods based on their needs. Beneficiaries also do not need to look for e-warong as an agent for providing their daily needs.

"The point is that cash assistance makes people receive funds faster, even they can get their daily basic needs more quickly,” said Robben.

Social assistance such as BPNT and Family Hope Program (PKH) is one of the MoSA’s strategies in poverty handling. Social assistance is used to reduce the daily expenses related to clothes, food, and houses of poor and vulnerable families.

"Here the government reduces the economic burden through the partiality of applying subsidy policies proportionally and with social assistance that covers basic needs, health, and education," said Robben.

To increase income, the Ministry of Social Affairs connects the beneficiaries with the business world through social empowerment.