National Targeting System Design Development

The Government of Indonesia is committed to reducing poverty as one of its economic and welfare development goals. Since 1998, various social protection programmes have been launched to help the poor, such as the Raskin Programme, Jamkesmas, Direct Cash Assistance (BLT), and others. However, analysis of data from the 2009 National Socio-Economic Survey (Susenas) shows that the targeting system for these programmes is still ineffective. Many poor people do not receive assistance that is appropriate to their needs, or conversely, many people who are not poor receive assistance that they should not receive. This is due to the mismatch between the databases used by each programme provider.

To improve the effectiveness of poverty reduction programmes, a data system is needed that is able to describe who and where the poor are. Macro data that only provides an estimate of the number of poor people at the provincial or kabupaten/kota level is not sufficient to target social assistance programmes. Micro data that provides information on the names and addresses of poor households or individuals (by name, by address) is needed. Experience from a number of countries shows that an integrated database that can be used by multiple programmes for beneficiary targeting can improve the efficiency and effectiveness of social protection programmes.

The Integrated Database for Social Protection Programmes is a system that can be used to plan and identify potential recipients of social assistance, whether households, families or individuals, based on socio-economic criteria set by programme implementers. 

The Integrated Database is also designed as the basis for integration and synchronisation of future programmes, so as to achieve four main objectives, namely:
- Improving targeting effectiveness, so that poverty reduction programmes can achieve their expected targets and objectives.
- Creating synchronisation between programmes, so that poor households can receive all social protection programmes that suit their needs.
- Provides flexibility in accommodating the objectives and needs of each social protection programme, as the data collected already includes some basic information needed for programme implementation.
- Can be used for all poverty reduction/social protection programmes, both at the national and regional levels.

To build an Integrated Database with a high level of accuracy in targeting poor households, one of the steps taken is to develop an appropriate methodology for targeting and selecting poor households. 

This methodology must be in accordance with the conditions of poor households in the field. The development of this methodology is done by combining statistical techniques, econometrics, data mining, and consultation with the community. The aim is to increase the accuracy of the Social Protection Programme (PPLS) data. This methodology will facilitate the implementation of social assistance programmes and be more accepted by ministries/agencies, local governments, and the community. Thus, with the Integrated Database, the government is expected to develop a national targeting system design that is more accurate, integrated, synchronised, and broad, in accordance with the poverty conditions of each region.