2012年-世界发展银行全球_History_and_Evolution_of_Social_Assistance_in_Indonesia_36页_995kb

Summary of the History and Evolution of Social Assistance in Indonesia

Core Content

This document provides an overview of the history and evolution of social assistance programs in Indonesia from the New Order Regime (1965-1997) through the Asian Financial Crisis (1997-1999) and into the early 2000s. It outlines the development of legal and financial frameworks, the establishment of key social assistance initiatives, and the broader socio-economic context that influenced these changes.

Main Viewpoints

• Social Assistance Transition: Indonesia transitioned from temporary, crisis-driven social assistance initiatives to a more permanent system of social assistance programs over the past 13 years.
• Legal and Financial Foundations: The 2000s saw the development of a legal framework that expanded the rights of Indonesian citizens to include education, employment, housing, medical care, and social security guarantees.
• Decentralization and Governance: The Asian Financial Crisis led to significant political and administrative reforms, including the decentralization of decision-making and fiscal control to district governments.
• Economic Impact: The crisis caused a sharp increase in poverty and a decline in human welfare, prompting the GOI to implement a range of social assistance programs to mitigate the effects.
• Targeted Programs: Programs such as the sale of subsidized rice, scholarships, block grants, and health insurance were introduced to support the poor and vulnerable.
• Fiscal Constraints: Energy subsidies, particularly fuel and electricity, remained a significant part of the GOI's budget and often constrained fiscal and public investment objectives.

Key Information

1. New Order Regime (1965-1997)

• Constitutional Rights: The 1945 Constitution established rights to education, health services, and employment.
• Social Insurance Systems: The GOI introduced social insurance systems such as Jamsostek, Askes, Taspen, and ASABRI to cover government employees and military personnel.
• Coverage Limitations: These systems historically covered less than 10% of the population, excluding those in the agricultural and informal sectors.
• Poverty Reduction: Economic growth led to a decline in poverty, especially in rural areas, due to agricultural and rural development strategies and investment in education and health services.
• Informal Assistance: Informal credit markets and community support played a significant role in providing assistance to those in need during this period.

2. Asian Financial Crisis (1997-1999)

• Crisis Impact: The crisis caused a sharp increase in poverty, with the headcount doubling from 23 million to nearly 50 million in 1998.
• Government Response: The GOI launched the Jaring Pengaman Sosial (JPS) to provide targeted social assistance, including subsidized rice, scholarships, and block grants.
• Decentralization: Laws passed in 1999 laid the foundation for decentralization, including direct elections for local executives and the reconstitution of legislative bodies.
• Fiscal Reforms: The GOI aimed to reduce regressive subsidies and replace them with targeted safety net programs.
• Leakage Issues: The OPK (Operasi Pasar Khusus) program faced significant leakage to non-poor households, reducing its effectiveness in increasing food security.

3. Social Assistance – Financial and Legal Foundations (2000-2004)

• Constitutional Amendments: The Second Amendment of the Constitution (2000) expanded citizens' rights to include social security guarantees.
• New Laws: Laws on child protection, national education, and the national social security system were introduced to improve social protection.
• International Instruments: The GOI incorporated international human and labor rights instruments into Indonesian law.
• National Development Program: The Program Pembangunan Nasional (Propenas) aimed to foster macroeconomic stability and sustainable growth.
• Subsidy Reduction: Fuel subsidies were gradually reduced from 2000 onwards, though efforts to link domestic prices to global prices were suspended due to the Iraq War.
• Fiscal Trends: Fuel subsidies increased from 5% of the central government expenditure in 2003 to 23% in 2004 and 32% by 2008.
• Social Assistance Expansion: The GOI introduced new initiatives such as unconditional cash transfers (UCTs), subsidies for public transportation, and support for poor fishing communities.

Conclusion

The history of social assistance in Indonesia reflects a shift from crisis-driven, temporary measures to a more structured and permanent system. This transition was influenced by both economic and political developments, including the Asian Financial Crisis and subsequent decentralization reforms. The legal and financial foundations laid during the 2000s helped shape a more comprehensive approach to social protection, although challenges such as subsidy leakage and fiscal constraints continued to impact the effectiveness of these programs.