History and Evolution of Social Assistance in Indonesia
Over the past 13 years, the Government of Indonesia (GOI) has moved from a set of temporary, crisis-driven social assistance initiatives towards a more permanent system of social assistance programs. This background paper aims to provide a brief hi...
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Format: | Public Expenditure Review |
Language: | English en_US |
Published: |
Washington, DC
2013
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Online Access: | http://documents.worldbank.org/curated/en/2012/02/16955572/history-evolution-social-assistance-indonesia http://hdl.handle.net/10986/12259 |
Summary: | Over the past 13 years, the Government
of Indonesia (GOI) has moved from a set of temporary,
crisis-driven social assistance initiatives towards a more
permanent system of social assistance programs. This
background paper aims to provide a brief history of the
major developments in the GOI's household-targeted
social assistance policy and programs with more limited
discussion of supply-side and community social assistance
initiatives. The note is organized chronologically with
developments in social assistance presented together with
information about the economic, political and social
contexts in which these developments occurred.
Indonesia's economic growth was also associated with
substantial declines in the poverty, especially among rural
households. The poverty headcount fell from 54.2 million to
34.5 million Indonesians and poverty incidence fell from
41.1 to 17.7 percent. While poverty reduction was not a
policy objective in GOI documents until the early 1990s, the
GOI's agricultural and rural development strategies and
commitment to human capital investment through financing and
provision of education and health services also contributed
to poverty reduction. Furthermore, the GOI intervened in
staple foods markets for the purpose of reducing domestic
price volatility and increasing food security. During this
era, when individuals or families employed in the informal
sector required in-kind or financial assistance, they sought
it from extended families, communities, or informal credit markets. |
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