The Indonesian government has allocated Rp479.1 trillion for social protection in 2023.

The Indonesian government has allocated Rp479.1 trillion (approximately US$32 billion based on current exchange rates) for social protection in the 2023 State Budget (RAPBN). This represents a 4.7% decrease compared to the Rp502.6 trillion outlook for this year.

The Ministry of Finance attributes this reduction to the elimination of the National Economic Recovery (PEN) program in the upcoming year.

The majority of the social protection budget is allocated through central government spending, channeled through Ministries/Agencies (K/L) and non-K/L entities.

The breakdown of the social protection budget allocated through Ministries/Agencies includes:

1. Ministry of Social Affairs: Rp74,208.7 billion (approximately US$4.9 billion), primarily for the Family Hope Program (PKH) benefiting 10 million recipients and the Sembako Card Program for 18.8 million recipients.

2. Ministry of Health: Rp46,531.5 billion (approximately US$3.1 billion) for healthcare insurance contributions for 96.8 million participants of the National Health Insurance (JKN) program.

3. Ministry of Education, Culture, Research, and Technology: Rp20,008.7 billion (approximately US$1.3 billion) for the Indonesia Pintar program (17.9 million students) and the Indonesian Smart Card for Higher Education (KIP Kuliah) program (908,900 students).

4. Ministry of Religious Affairs: Rp2,566.3 billion (approximately US$170 million) for the Indonesia Pintar program (2.2 million students) and the KIP Kuliah program (67,800 students).

Meanwhile, Rp311,873.1 billion (approximately US$20.7 billion) is allocated through non-K/L entities. This includes Rp289,299.2 billion (approximately US$19.2 billion) for electricity subsidies, 3kg LPG subsidies, KUR interest subsidies, the Kartu Prakerja program, and disaster relief funds.

Furthermore, social protection funds are also allocated through regional performance allowances (TKD), focusing on Village Funds, including direct cash assistance (BLT) for villages.