Realizing financial inclusion for the world’s poorest – Opinion – Jakarta Post

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Siti Hilya Nabila (The Jakarta Post)

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New York   ●   Thu, October 7, 2021

Approaching its third decade, the Family Hope Program (FHP) is one of Indonesia’s main social assistance policies, and in recent years its government-to-person (G2P) disbursement process has been digitized for the 10 million poorest females in Indonesia. This digitized G2P payment is an initiative made under the administration of President Joko “Jokowi” Widodo in 2017, based on the mission of turning all Indonesians into a banked population.

Before digitization, since 2007 the FHP had been Indonesia’s conditional cash transfer program whose series of programs comprising: G2P cash payments via the post office; top-down monitoring regarding the use of G2P cash, executed by facilitators employed by the Social Affairs Ministry (for example for pregnant women, the G2P cash must be allocated to pay for routine pregnancy check-ups); family development session (FDS), educational sessions about proper financial planning and family development and the ultra-poor graduation program.

Given the complexity of Indonesia’s demographic, geographical and cultural conditions, digitizing the FHP disbursement in 2017 was considered a very bold step for Indonesia.

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