As Indonesia emerges as a middle-income country and an important player in the global economy (G20), Abdurrahman Syebubakar stresses that there are still three major problems: slowing reduction of poverty rates, rising inequality and a high level of vulnerability for much of the population living in poverty.
Syebubakar highlights the Government of Indonesia's current social protection programs including the Prosperous Family Savings Program (PSKS) that gives direct assistance to the poorest 25 percent of the population. As it is often the case, this is another poverty-targeting scheme which can hinder poverty alleviation. Stephen notes:
“that in developing countries, there is no poverty targeting mechanism that comes remotely near being accurate in identifying people living in poverty.
Even well-known schemes such as Brazil’s Bolsa Familia and Mexico’s Oportunidades programs excluded 49 percent and 70 percent respectively of their target populations.”
Syebubakar looks at the advantages of inclusive provisions, and how this can help with poverty alleviation in Indonesia, find out more on The Jakarta Post.