Universitas Gadjah Mada
Faculty of Economics and Business

In alleviating poverty and overcoming economic vulnerability in Indonesia, the 2023 Global Summer Week (GSW), which was organized by the Faculty of Economics and Business, Universitas Gadjah Mada (FEB UGM) presented Dr Sudarno Sumarto, a researcher from the National Team for the Acceleration of Poverty Reduction (TN2PK) and the SMERU Research Institute, to fill in the 15th lecture entitled "Social Protection for All: Indonesia's Efforts to Overcome Poverty and Economic Vulnerability."

Sudarno explained that social protection is a set of policies and programs designed to reduce and prevent poverty and vulnerability throughout an individual's life cycle. This includes various actions to support and assist those in need to create inclusive economic growth that addresses inequality. In the Indonesian context, social protection relies on a targeting instrument known as the Unified Database (UDB) to identify specific program beneficiaries and create an effective system.

Indonesia's social protection system focuses on reducing spending burdens and "poor pockets" while increasing access to essential services and connectivity between regions, explained Sudarno. This encourages budget convergence between the central and regional governments, program consolidation, and increased involvement of local stakeholders. By adopting evidence-based policies, social protection can break the transmission of poverty between generations and improve short- and long-term outcomes.

In addressing the need for social protection, it is essential to protect the level of welfare of individuals and prevent them from falling below the poverty line. Although there has been progress in reducing poverty, substantial heterogeneity still exists across districts. Social protection is also critical in reducing the inequalities that hinder economic growth, as well as ensuring equitable access to essential goods and services and creating a more inclusive and sustainable development path.

In its implementation in Indonesia, the Indonesian government's National Economic Recovery Plan (PEN 2020) plays an essential role in reducing the socio-economic impact of the pandemic. Social assistance programs are expanded through fiscal expansion to reach groups beyond the bottom 40% of the social register, aiming to increase household demand and accelerate economic recovery, concluded Sudarno. Then, this session ended with a question and answer, which was very participatory.

Reportage: Hayfaza Nayottama