Raskin Subsidized Rice Delivery
The Beras untuk Rakyat Miskin (Raskin) program was introduced as an emergency food security program in 1998; it delivers rice to be purchased at subsidized prices, prioritized to poor and near-poor households. In terms of government expenditure, Ra...
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| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Jakarta
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/921501468268826381/Raskin-subsidized-rice-delivery http://hdl.handle.net/10986/26694 |
| Summary: | The Beras untuk Rakyat Miskin (Raskin)
program was introduced as an emergency food security program
in 1998; it delivers rice to be purchased at subsidized
prices, prioritized to poor and near-poor households. In
terms of government expenditure, Raskin remains the largest
permanent social assistance transfer targeted to poor
households in Indonesia. Though developed as a response to
crisis, Raskin has become a permanent program and in real
expenditure terms is one of the few social assistance
programs with a larger budget in 2010 than in 2005. In 2010
Raskin accounted for nearly 53 percent of all
household-targeted social assistance spending carried out by
the central government. Over 2000 to 2010, the amount of
rice allocated by the Raskin program has averaged over 2
million tons per year; in 2010 the almost 3 million tons
allocated could have delivered between 30 and 40 kilograms
per month to the approximately 6.2 million households at or
below the poverty line. The distribution of Raskin rice does
not closely align with the objectives laid out in program
manuals and official documentation for at least three
reasons. First, not all of the rice procured for the Raskin
program makes it to households. In the three most recent
years for which there is audited budget data (2007 through
2009), nationally representative household surveys indicate
that only half (or less) of the rice procured for Raskin is
purchased by households. The readily-available budget and
administrative records cannot indicate where the bulk of
this "missing" rice exits the delivery chain, and
no single agency or authority is in charge of Raskin rice
from procurement to household purchase. This note assesses
the operation and implementation of the Raskin program to
determine how well poor households are served by the program
and the overall cost of program resources. The note provides
quantitative analysis of the coverage, incidence, and
average benefit levels of Raskin to determine both the
progressivity of the program's targeting and the
adequacy of benefit levels. Qualitative information on
program delivery and program operations will also shed light
on areas for reform. An evidence-based appraisal of the
household-based transfer currently consuming over 50 percent
of the entire social assistance budget envelope can provide
inputs to the Government of Indonesia (GOI) as it continues
to try to achieve both Pro-Poor development for all
Indonesians and the Millennium Development Goals (MDGs). |
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