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Local government leads the way with inclusive social protection in Indonesia

28/08/2017

Inclusive pension in Indonesia

28th August 2017: The local government in one Indonesian district has reported on the impacts of an inclusive social protection scheme for the elderly and committed to its continuation.

The Regency of Aceh Jaya has invested in a 200,000 Rupiah monthly pension for everybody aged 70 or older, the ASLURETI social protection programme.

This has been evaluated with support from the Australian Government under the MAHKOTA programme, which, with the National Team for the Acceleration of Poverty Reduction, last week outlined in the below video how the social protection scheme has contributed to the district meeting its target to reduce the number of people in poverty by 17%.

The local authority has also highlighted a number of examples of how this inclusive social protection scheme has made a difference to people’s lives. It has allowed essential investment and more economic activity, improvements in health due to less unsuitable labour, and benefits for other family members – such as allowing caring responsibilities to be carried out without exacerbating poverty for a household. The local government has now committed 6.6bn Rupiah (around £385,880) to continue the scheme for the next five years, to 2022.

Development Pathways believes in an evidence-based approach to tackling poverty and to the design of social protection schemes. There is good evidence of the benefits of introducing inclusive social protection schemes, which we know from experience can be efficiently created.

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