Poverty Alleviation Policy in Indonesia under SBY: Challenges and Reforms

Crawford School of Public Policy | Arndt-Corden Department of Economics | Indonesia Project

Event details

Indonesia Study Group

Date & time

Wednesday 05 September 2012
12.30pm–2.00pm

Venue

Seminar Room B, Coombs Building, Fellows Road, ANU

Speaker

Elan Satriawan (Gadjah Mada University, Yogyakarta)

Contacts

Indonesia Project
+61 2 6125 3794
After two decades effort that was considered successful by any international standard during New Order regime, in the mid 1990s the poverty alleviation effort in Indonesia started to reach rough and mounting roads with several bumpy spots including 1997/98 Asian Financial Crisis, international oil price crisis in the mid of 2000s and 2008/09 global crisis. Those external shocks were also coupled by domestic fiscal pressures that tightened budget space for administration to spur the economy and improve social welfare. These events drove some reforms on social policy. First wave of the reform started in 2005 when government cut the fuel subsidy –then in 2008’and use the saving to finance new and more targeted poverty reduction programs including unconditional cash transfer, health insurance for the poor and rice for the poor. The programs uniquely characterized social policy under first President SBY administration. Further reforms were made in SBY second term. In 2010, SBY established National Team for the Acceleration of Poverty Reduction (Tim Nasional Percepatan Penanggulangan Kemiskinan, TNP2K) which is chaired directly by the Vice President. The team is designed as coordinating agency in poverty alleviation policy and social policy sectors knowing that lack of coordination and synergy among relevant cabinet members and stakeholders as one of main problems for social policies to be effective. During the first two years, the team has been formulating some reforms with regard of the design of poverty alleviation programs. The team also sets some guidance for relevant technical minister to work together and ensures it to happen. Under these coordinated efforts, poverty rate is expected to reach 8-10 percent by 2014.

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