The Ministry of Social Affairs and National Logistic Agency Synergize to Distribute BPNT

JAKARTA (October 18, 2019) – The Non-Cash Food Assistance Program began in 2017, and is a transformation from the previous program, namely the Prosperous Rice Subsidy (Rastra) program. The Rastra program is also a transformation from the previous program, namely Rice for the Poor (Raskin), which has been implemented since 2002.

The change in the form of the program was carried out as an effort by the Government to continue to improve the implementation mechanism for distributing food assistance to poor families. The Raskin program which later became Rastra, based on evaluations carried out including recommendations from the World Bank, was deemed and declared to be less successful in meeting the 6T principles (Right on Target, Right in Quantity, Right in Price, Right in Time, Right in Quality, and Right in Administration).

According to the World Bank (2014), various problems are still encountered in the implementation of the Rastra Subsidy program, including inaccuracy in targeting, inaccuracy in the quantity of rice received by Beneficiary Families (KPM), and poor quality of rice.

As an effort to improve the Rastra Subsidy program, the Government made improvements and changed it to a Non-Cash Food Assistance program, where in this program, the distribution of assistance is carried out through updating the Unified Database. In addition, the Government provides Rastra Subsidy assistance by the District Social Welfare Workers (TKSK).

This was conveyed by the Minister of Social Affairs Agus Gumiwang Kartasasmita in a press release issued by the Public Relations Bureau of the Ministry of Social Affairs, Friday 18 October 2019.

Non-Cash Food Assistance (BPNT) began in 2017, which was gradually distributed in 44 cities in Indonesia. In the BPNT program, the Government transfers funds of Rp. 110,000 per KPM per month through the Association of State Banks (Himbara - Mandiri, BNI, BRI and BTN). The KPM funds are used to buy food in the form of rice and/or eggs at electronic mutual cooperation stalls (e-Warong) which have been designated as BPNT distributors using the Prosperous Family Card (KKS).

The social assistance mechanism as currently implemented must remain within the BPNT framework. This is because the BPNT program is an improvement or refinement program from the previous program, namely the Rastra Subsidy. "Transformation from one program to another is aimed at building a more effective protection system in alleviating poverty," said Agus Gumiwang.


BPNT Declared Success

The BPNT program has many benefits and advantages. The BPNT program, which can be said to be very young, has made very satisfying achievements in the past 3 years. In MicroSave's study results on BPNT implementation at the end of 2018, they said that 96% of KPM were satisfied with the BPNT program. Many KPM feel that BPNT is currently easy and convenient because BPNT provides food ingredients in the form of premium quality rice, freedom in choosing the type and good quality, and provides easy access to e-Warong.

In addition, BPNT empowers and grows local small businesses to develop. The BPNT program requires KPM to have a bank account, which has an impact on millions of KPM connected to banking services (financial inclusion).

This very high satisfaction was achieved because the BPNT program prioritized the 6T principles. With the 6T principle in place, the BPNT program minimizes the occurrence of fraud, so that the Ministry of Social Affairs supports the efforts of anyone with good intentions in eradicating the food mafia, and is welcome to report this to the Indonesian Police's Food Task Force.


The Ministry of Social Affairs Cooperates with National Logistics Agency

With the change in rastra transformation to BPNT, the distribution of rice by National logistic agency as stated by the Director of National logistic agency has become stagnant. Based on the results of the MicroSave study, currently 47% of BPNT Warungs are still using Rice from a National logistic agency, and the rest should be taken over by a National logistic agency.

For this reason, the Ministry of Social Affairs has provided a 'red carpet' to National logistic agency through Circular of the Minister of Social Affairs of the Republic of Indonesia Number 01/MS/K/07/2019 on Natioanal logistic agency as a Provider of Non-Cash Food Aid Commodities. In line with that, National logistic agency has also guaranteed quality rice and distributed it according to the 6T principle. "Of course the government and National logistic agency have the same understanding and interest in serving KPM participating in the BPNT program," said Agus Gumiwang.


Acting Head of Public Relation Bureaue of the Indonesian Ministry of Social Affairs

Sonny W Manalu