KKS Ensures Access to Comprehensive Social Assistance Programmes by the Underprivileged

10 November 2014

The government is promoting a new era of improved social welfare with the Family Welfare Deposits Programme, the Creation of Productive Family Activities, Healthy Indonesia Programme and Smart Indonesia Programme. "These programmes constitute a new era in improved welfare for the disadvantaged, with productive activities, such as deposit accounts, continued education and the provision of broader health insurance," said Ari Perdana, Coordinator of Cluster 3's Control Team at the National Team for the Acceleration of Poverty Reduction (TNP2K) at the opening of a press conference (7/11) at the Aston Hotel, Makassar.

The provision of assistance intends to boost access to formal financial systems in order to improve the income distribution and safeguard financial systems. Perdana added that the government wants to use the programmes to protect and empower the disadvantaged through technology, and the use of Family Welfare Deposits (electronic money), which are funds dispensed into people's bank accounts that can be set aside or used for productive activities, such as businesses.

Furthermore, Smart Indonesia Cards (KIP) guarantee and ensure that school-aged children from disadvantaged families receive financial assistance up to the completion of high school/vocational school. Meanwhile, Healthy Indonesia Cards (KIS) ensure the provision of healthcare, as per the National Health Insurance (JKN).

Approximately 478,240 targeted households received these card in South Sulawesi, almost the same as the number who received Social Assistance Cards (KPS) last year. For Makassar, the figure was around 43,952 targeted households.

According Sumedi, Senior Manager of Electronic Banking at Mandiri Group, said that the government wants to turn the cards into a form of saving. "Public access to formal banking is still very minimal. The problem is the distance from people's houses to banks, or that they are embarrassed to come to the bank. Digital Financial Services will bring many more closer to the banks," said Sumedi.

Agus Priyanto, Manager of Financial Services Operations at PT. Post in Maluku said it is ready to assist with the payments related to the new programmes. In order to help more people come to the Post Office, it is providing a mobile post office. "Of course this will makes things easier for the general public, so there is no need for them to spend money in order to access this assistance," he said.