Oecd Development Pathways Social Protection System Review of Indonesia

Foreword
Acknowledgements
Abbreviations and acronyms
Executive summary
Assessment and recommendations
	Indonesia’s economic development has not benefited the entire population
	Social assistance has evolved rapidly and expanded recently
	Indonesia is making rapid progress towards universal health coverage but pension coverage remains low
	Social protection spending is constrained by low domestic resource mobilisation
	A systems approach is reducing fragmentation of social protection
	Recommendations
		Consolidate child grants and strengthen social assistance for the elderly to address the last-mile problem (short-to-long term)
		Strengthen the information architecture for social protection (short-to-medium term)
		Regularise and strengthen social services (short-to-medium term)
		Strengthen social insurance coverage among the missing middle (short term)
		Reconfigure labour market interventions to meet the needs of Indonesia today (medium term)
		Revise decentralisation for coherence between national and sub-national government (medium term)
		Consolidate the institutional framework for social protection (medium term)
		Leverage social protection to offset gender disparities (medium term)
Chapter 1.  A forward-looking assessment of social protection needs
	Indonesia confronts a last-mile problem in reducing poverty
		Regional differences
	Women, children and the elderly are most exposed to risks across the life cycle
		Age profile
		Maternal mortality
		Infant and child mortality
		Education
		Adulthood
		Old age
		Health risks
		People with disabilities
	Climate change is a threat while Industry 4.0 poses opportunities and risks
	Note
	References
Chapter 2.  Social protection coverage
	Social protection is growing in prominence
	Social assistance has evolved in a fragmented fashion
		Background
		Social assistance programmes
			Food assistance
				Rice for the Poor: Rastra
			Education
				Assistance for Poor Students: Programme Indonesia Pintar (PIP)
				Student Scholarships: Bidikmisi
			Cash transfers
				Family of Hope Programme: Program Keluarga Harapan (PKH)
				Neglected Elderly Social Assistance: ASLUT
				Co-operative Business Groups: KUBE
				Empowerment of the Indigenous Community: Komunitas Adat Terpencil (KAT)
				Social Assistance for Children and Family Development
				Social Assistance for the Severely Disabled: Asistensi Sosial Penyandang Disabilitas Berat (ASPDB)
				Rehabilitation and Social Assistance for Drug Addicts: Rehabilitasi dan Perlindungan Sosial untuk Korban Penyalahgunaan Napza
				Social Assistance for Socially Vulnerable People: Perlindungan Sosial untuk Tuna Sosial
				Stimulus Assistance for Housing: Bantuan Stimulan Perumahan Swadaya (BSPS)
				Uninhabitable House Rehabilitation Programme: Rahabilitasi Rumah Tidak Layak Huni (RS-RTLH)
	Social insurance is leading systematisation of social protection
		Old-age and work accident programmes
		Health insurance
	Labour market programmes are too small to increase productivity
		Active labour market policies
		Passive labour market policies
	Gaps in social protection reflect structural constraints to Indonesia´s development
	Notes
	References
		Annex 2.A. Detailed inventory of social protection programmes
Chapter 3.  Effectiveness of social protection
	Rice for the Poor: Rastra
		Coverage of Rastra
			Targeting performance
		Adequacy of Rastra
		Equity of Rastra
			Beneficiary incidence and distribution
			Benefit incidence and distribution
		Efficiency of Rastra
	Assistance for Poor Students: Programme Indonesia Pintar (PIP)
		Coverage of PIP
		Adequacy of PIP
		Equity of PIP
			Beneficiary incidence and distribution
			Benefit distribution
		Efficiency of PIP
	Social Health Insurance for the Poor and Near Poor: Penerima Bayaran Iuran (PBI)
		Coverage of PBI
		Adequacy of PBI
			Generosity of benefits
		Equity of PBI
			Beneficiary incidence and distribution
			Benefit distribution
		Efficiency of PBI
	Conditional cash transfer: Program Keluarga Harapan (PKH)
		Coverage of PKH
		Adequacy of PKH
		Equity of PKH
			Beneficiary incidence and distribution
			Benefit distribution
		Efficiency of PKH
	Pensions in Indonesia: a gender perspective
		Women are vulnerable in old age
		Employment histories
		Burden of care and labour force participation
		Women’s support strategies in old age
			Work
			Family support
			Social protection
		Implications for the pension system
	Notes
	References
Chapter 4.  Financing social protection
	Changes to the structure of spending offer space for social protection to scale up
	Spending on key social assistance programmes is growing strongly
		Penerima Bantuan Iuran (PBI)
		Rastra and Bantuan Pangan Non Tuna (BPNT)
		Program Indonesia Pintar (PIP)
		Program Keluarga Harapan (PKH)
		Bantuan Langsung Sementara Masyarakat (BLSM)
	JKN’s success in reaching the missing middle is threatening its sustainability
	Low revenues are a major constraint on Indonesia’s development
	Indonesia’s fiscal deficit is narrowing and debt levels have declined
	The combined impact of taxes and direct transfers is to reduce inequality
	References
Chapter 5.  Strengthening the social protection system
	The institutional structure for social protection remains fragmented
	Shared system functions should be expanded
	Build on and refine the Unified Database
	Clarify and optimise sub-national government’s role in social protection
	Empower social workers to implement and strengthen social protection policies
	Continue to consolidate social assistance programmes
	Prepare for growing pressure around benefits for the elderly
	Strengthen the contributory system to reach the missing middle
	A bright future for social protection but higher funding is needed
	References