Social aid funds to be disbursed digitally

All government social aid funds for the poor will be accessible through electronic money channels to make it more easy for recipients to cash in the financial assistance.

The facility was made available through a partnership signed on Thursday between Bank Indonesia ( BI ) as well as the Office of the Coordinating Human Development and Culture Minister and all four ministries under its purview, covering religion, culture and education, social affairs and disadvantaged regions and transmigration.

BI Governor Agus Martowardojo said that previously, either social aid recipients or officials encountered many problems in the process of disbursing social aid in cash, such as consuming a lot of time and money, as well as causing a long queue.

“The problems will not occur when aid is channeled directly to the recipients’ savings or virtual accounts,” Agus told reporters after the signing ceremony at the central bank’s headquarter in Jakarta.

The shift to non-cash social aid is also expected to increase recipients’ saving habits, which could improve their welfare, he added.


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