In cooperation with INGSA: Indonesia, Covid-19 and Social Protection

COVID-19 and the implications and response on urban and rural poor in Indonesia

 

Indonesia is in the middle of a second wave of infection as delta strain is spreading quickly especially in a mega city such as Jakarta. The government response is to implement restrictions of community activities (PPKM) to slow down the spread of deadly virus.[1] The impact of these movement restrictions has caused  the increase of unemployment and poverty in the region.[3] The majority of sectors affected by movement restrictions include: hotels, tourism, informal sectors, manufacturing and retails, and other services. Most poor people living in urban and rural areas, work in informal sectors. The majority of this work has lack of social protection, rights at work and decent working conditions.

 

This article will examine the implications of movement restrictions as measures to curb the spread of the virus on urban and rural poor in Indonesia. This article highlights the  importance of social safety nets including food security and health protection in times of pandemic. One of the main challenges of social protection schemes in Indonesia is a good and updated database system on the beneficiaries of social policies. This article contends that targeted social safety protection remains a critical policy in times of pandemic and its successful implementation depends on good data on possible beneficiaries. By improving such data through one data policy will help to  address such challenges as food insecurity among the poor and vulnerable groups.

 

Social Protection

People working in informal sector such as street vendors, are earning money on daily bases. If they lost their job or cannot go to work, they cannot earn money and cannot support their families by buying food and other basic needs. Some economists have reported that more than half of Indonesia’s population of 270 million spend below $60 a month.[4] The longer movement restrictions last, the more likely these vulnerable groups are to   fall into hunger and .further into debt. People working in informal sectors and casuals like online drivers, grocery store assistants and kitchen hands, construction workers do not have the luxury of working from home as their jobs cannot be done remotely.[5] Women  are a particularly exposed group during this economic downturn as they should both carry working and caring responsibilities for the family. Usually, families in rural areas depend on the money husbands earn through informal work in Jakarta and wive’s work in informal sector in rural areas.  With emergency Community Restrictions (PPKM ) both urban and rural areas affected by this policy.

Urgent actions are needed to address poverty and inequality. Social protection systems can help individuals and families, especially the poor and vulnerable, to cope with crisis and shocks.[6]  Well established social protection system and social safety net in a normal time can absorb the shock caused by the pandemic. However, the current social protection system in Indonesia has some shortcomings. As the existing safety nets do not cover the unemployed, many of the  poor people struggle in times of pandemic,. The main limitation of the existing social protection system is mis-targeted and  unequal distribution social protection and aid due to lack of reliable recipient data.[7] Furthermore, most of the benefits provided in low and middle income countries have not been enough to cover the basic needs of people and are only temporary. According to an Indonesian survey , a 60 dollar payment of cash transfer is only enough to cover 3 days of living in urban areas in Jakarta.[8]

 

Safety nets

Several social protection programs were launched as safety nets during the pandemic. The first was food aid. In early March 2020, the central and local government launched targeted distribution of food assistance to poor and vulnerable groups. Food aid was distributed by the central government through the Ministry of Social Affairs which allocated USD 325.78 million for social protection including the distribution of food packages (BNPT) to 15.2 million household recipients. The food packages worth 14 dollar package (rice, green bean, potato, and chicken meat)[9]  were distributed from March to December throughout every province in Indonesia. This food assistance was later extended to August 2021. The mechanism of distribution is based on a card system (Kartu Keluarga Sejahtera). The cards are given to every targeted household recipient and with these cards they can purchase food in places that provides e-warong (kiosk). In addition, the government launched rice aid (10 kg per household/recipient?) for these  food card holders. However, the implementation process of these policies was slow and mistargeted  distribution occurred as eligible recipients were not detected while  some ineligible households received the food aid packages. The cause of this misfortunate implementation is the lack of coordination between the central and local governments and the lack of updated data on beneficiaries[10] As the ministry of social works used datasets from The Central Bureau of Statistics  (BPS) survey in 2015.[11]

 

The second social program was the cash transfer program. Indonesia deployed its largest cash transfer program as part of the social protection program. Cash transfers proved crucial in response to the financial crisis as the existing and new cash transfers helped to alleviate financial barriers families faced in accessing goods and services. Cash transfer  or (Bantuan Sosial Tunai (BST)) from the Ministry of Social Affairs to the poor people. The government distributed an amount of 42 dollars every month to 9 million targeted households from April to June 2020.[12] The amount was reduced to 21 dollars from July to December 2020. The government has extended the cash transfer program for vulnerable people affected by COVID to August 2021. Moreover, an additional cash transfer was proposed by local governments for 5.9 million households not covered by previous cash transfer program batch. Unequal and mis-targeted distribution  occurred also in the cash transfer program which in some rural areas had very negative effects as it created jealousy in communities.[13]

 

 

The third social program included  free and discounted electricity until December 2021 for 2 million poorest households in the 450 volt ampere (VA) category.[14] The government would also give 50 percent discount for 7 million households in the 950 volt ampere (VA) category.[15] Similarly, to food aid and cash transfer, free and discounted electricity is unequally distributed due to datasets used.

 

The fourth program focused on  pre-employment card training and was released in  March 2020. Pre-Employment Card Program aims to help improve the skills of the Indonesian people by providing more than 1,700 kinds of training from 165 training institutions.[16] The pre-employment card received criticism from the public “since the utilization of the benefits are limited to skill improvement and job seeking purpose, the relevance of such benefits during this difficult situation is in question since job seekers and terminated employees are currently more in need of financial support to purchase basic needs”.[17]

 

 

The final program was the government launched productive social assistance program for micro businesses to help them survive in times of pandemic. TP2NK (Tim Nasional Percepatan Penanggulangan Kemiskinan) is the National Team for the Acceleration of Poverty Reduction and was created to promote coordination across ministries/agencies to improve the implementation of poverty reduction programmes, improve the living standards of the poor and vulnerable, as well as reduce inequality among income groups.[18] However, this coordination is also highly affected by the lack of sufficient datasets, as some poor people do not get registered in the integrated datasets from TP2NK.[19]

 

 

Health protection

The pandemic infected all segments of the community from rich and poor. However, marginalized communities were disproportionately affected by pandemic. Most marginalized communities in urban areas live in slum areas. Living in densely populated areas and housing makes them more vulnerable to risk infected by COVID-19. Jakarta, home to one-fifth of Indonesia’s urban population, has emerged as Indonesia’s Covid-19 epi-centre. Despite the risk, the Rujak Centre for Urban Studies found that, to date, only a small number of Jakarta’s poor neighborhoods had high numbers of infections.[20] This is probably because of lack of testing or because those who mobile more is the urban middle class. The mobility of workers, both from middle class and the poor neighborhoods,  from satellite cities across Jakarta (Jakarta, Bogor, Tangerang, Bekasi) and outside Jakarta to rural and villages make the virus spread both in urban and rural areas. While the poorer migrants probably choose to go back to their home in rural areas as there were no more jobs in Jakarta.

 

A second wave of COVID-19 has overwhelmed Indonesia’s health care system as some hospitals ran out of beds and lacked oxygen supplies. As a result, some communities organised and relied on themselves and each other in order to survive and to find whatever is needed to treat the sick. In this dire situation there is a joke that poor people should not get sick. Despite the government’s announcement that it is providing full medical coverage for COVID-19 patients through the National health insurance provider (BPJS), there are still flaws in these policies. For example, the regulation stated that only participants to the insurer can get covered. The poorer households usually cannot pay monthly premium of insurances loosing their membership in insurance program. However, the government has reassured the public that they will overcome this legal barrier.

 

The figure below shows that most of BPJS participants are central government’s subsidy recipients.

Source: BPJS Kesehatan[21]

Universal health participants in Indonesia

 

In addition, the poor must bear the cost of isolation if they are infected by virus and need to isolate at home and provide their own food and medicine for 14 days without working.[22] There are some assistance to be received from local government for poor people in isolation, however, this aid is not distributed properly as many of eligible recipients had not received it.

 

Therefore, in terms of health protection and service, the government needs to provide the same standard of health service for all regions. In-adequate health services were usually in rural areas and remote areas where it is difficult to have good quality of health service. There is disparity of rich and poor where rich people can afford to have high quality of health service in private hospitals while the poor s go to lower  health care service providers.

 

 

 

One database policy

COVID-19 has jeopardized marginalized and poor communities and revealed that existing social safety nets and health services are not adequate. It should be a starting point for the government to improve their social protection programmes, especially the coverage of the programs, amount of money and government’s database of social program recipients. There is an urgent need to fix the database of poor people in Indonesia. Data of beneficiaries remain a major challenge for the efficiency  of the social protection  programs.[27] Data management has been a long-standing challenge in Indonesia, specifically on disaster-related data. Key data sets are often spread and incomplete among different ministries. Targeting has many flaws and leakages consequently leaving  many citizens without protection. There is both an exclusion and inclusion error among beneficiaries participating in these programs.

One reason for the inefficiency in determining targeted of recipients  There are overlapping datasets, lack of reliable data and difficulties in sharing the date across ministries and local governments. To date the government social assistance program c uses data from the Ministry of Social Affairs namely Social Welfare Integrated Data (DTKS). DTKS is an electronic data system which contains social, economic, and demography data from 99 million individuals with the status of lowest income in Indonesia.[28] The source of DTKS is data collected by The Central Bureau of Statistics (BPS) in 2015. The COVID social protection programs used this BPS data from 2015, which  does not match with the real conditions of  2020. The  dynamic nature of poverty makes it difficult to update the data.  There are 92 regencies and cities in Indonesia that have not updated the poverty data since 2015. In addition, there is a sectoral ego and lack of coordination between central government and local government.

A one database policy will help agencies to provide accurate, high-quality data for decision making. A policy mechanism is used to identify individuals, families, and households which entitled to some forms of protection or social security from central and/or local government level. The challenges in providing a one-database policy in Indonesia are mainly caused by the absence of data architecture and management. National Development and Planning Ministry (Bappenas)[29] has a mandate to establish data architecture while the Ministry of Communication and Information (Kemkominfo) is responsible for the technology. Bappenas has delegated the responsibility of standardizing inter-ministry data to Statistics Bureau  Indonesia (BPS), the Geospatial Information Agency (BIG)[30], and the Ministry of Finance (Kemenkeu).

 

In addition to the challenges of data architecture, Indonesia also struggles to  to provide a single identity number to its citizens. The completion of the Single Identity number project was hindered by one of the most significant corruption cases in Indonesia as  the amount of loss that incurred to the state amounted to IDR 2,3 trillion.[31] Corruption is a major  challenge for effective distribution of  social security.  Corruption occurs both at the highest level, as well as at local village level.  At the highest level for example, Indonesia Minister of social affairs was arrested for allegedly taking $ 1.2 million in bribes relating to  food aid for those who were hit by a COVID pandemic in December 2020.[32]

Conclusion

COVID-19 has many implication to poor and marginalized communities both in urban and rural in Indonesia. The current government response to provide social safety nets including food aids, cash transfers, health protection and others social protection indeed can help the poor  to survive in times of pandemic. However, effective social protection delivery is hindered by un-updated database of beneficiaries. The distribution is un-equal, mis-targeted and not adequate.  One database policy is suggested become one solution to overlapping dataset and improve their transparency. One data policy can encourage open and accountable government to the public. However, data standardization and interoperability, or the ability for data to be exchanged between systems, are  remaining the challenges authorities face in establishing one data policy in Indonesia.[33]

 

 

 

References
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Asep Suharyadi, Vita Febriany, Athia Yumna, Expanding Social Security in Indonesia, The process and Challenges, 2014, https://media.neliti.com/media/publications/639-EN-expanding-social-security-in-indonesia-the-processes-and-challenges.pdf
Bahar, Pre-employment card tool develop Indonesian Human resources during covid-19, https://www.bahar.co.id/index.php/whats-new/whats-new/pre-employment-card-tool-develop-indonesian-human-resources-during-covid-19
Bisnis, Kemensos usulkan pengurangan KPM BNPT jadi 185 juta keluarga,3 September 2020  https://ekonomi.bisnis.com/read/20200903/12/1287002/kemensos-usulkan-pengurangan-kpm-bpnt-jadi-185-juta-keluarga
Devina Heriyanto, Jakarta Post, April 7, 2018,  Q & A bpjs Kesehatan health for all Indonesians, https://www.thejakartapost.com/academia/2018/04/06/qa-bpjs-kesehatan-health-for-all-indonesians.html
Dominique Virgil, Inequality in Pandemic how Government of Indonesia Puts Marginalized Communities into Jeopardy, 14 April 2020, https://shapesea.com/op-ed/covid-19/inequality-in-pandemic-how-the-government-of-indonesia-puts-marginalized-communities-into-jeopardy/
Faiq Hidayat, Harris Fadhil, Hakim korupsi e-ktp Rugikan negara 23 trilliun, 24 April 2018 https://news.detik.com/berita/d-3987822/hakim-korupsi-e-ktp-rugikan-negara-rp-23-triliun
Fikra Nurul Ulya, BPS: Ada 27,54 Juta Penduduk Miskin di Indonesia Hingga Maret 2021, Kompas, 15//2021 https://money.kompas.com/read/2021/07/15/143633326/bps-ada-2754-juta-penduduk-miskin-di-indonesia-hingga-maret-2021?page=all
Ian Wilson, COVID-19 inequality  and Jakarta’s Urban Poor Resilient but at great risk, Indonesia at Melbourne,  April 11 2020, https://indonesiaatmelbourne.unimelb.edu.au/covid-19-inequality-and-jakartas-urban-poor-resilient-but-at-great-risk/
I Nyoman Sutarsa, Atin Prabandari, Fina Triyati, No Work No Money how Self  Isolation due to COVID-19 Punishes the poor in Indonesia, The conversation, March 20, 2020, https://theconversation.com/no-work-no-money-how-self-isolation-due-to-covid-19-pandemic-punishes-the-poor-in-indonesia-134141
Jakarta Post, Government Commits to full BPJS Kesehatan Coverage for Covid-19 Patients, March 24. 2020, https://www.thejakartapost.com/news/2020/03/24/govt-commits-to-full-bpjs-kesehatan-coverage-for-covid-19-patients.html
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Kate Lamb, To Allard,  Stanley Widianto, Don’t Get Sick Indonesia’s Poor Miss out on COVID care, July 19, 2021, https://www.reuters.com/world/asia-pacific/dont-get-sick-indonesias-poor-miss-out-covid-care-2021-07-19/
Kompas, Juliari Batubara  dan sederet menteri sosial di tangkap KPK karena? Kompas 6/12/2020, https://www.kompas.com/tren/read/2020/12/06/132100465/juliari-batubara-dan-sederet-menteri-sosial-yang-ditangkap-kpk-karena?page=all
Kontan, Catat ini tujuh Bansos yang di perpanjang oleh pemerintah, 9 July 2021, https://newssetup.kontan.co.id/news/catat-ini-tujuh-jenis-bansos-yang-diperpanjang-oleh-pemerintah-1?page=all
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Laely Nurhidayah and Riyanti Djalante, Governance Responses to COVID-19  their implication on Food Security in Indonesia in Rajib Shaw and Anjula Gurtoo, Global Pandemic and Human security: Technology and  Development Perspective, Book Chapter Springer Nature,  up coming 2021
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Satria, Peneliti UGM efektivitas ppkm darurat Jawa Bali sangat bervariasi, UGM, 15 July 2021, https://www.ugm.ac.id/id/berita/21389-peneliti-ugm-efektivitas-ppkm-darurat-jawa-bali-sangat-bervariasi
Syaiful Syafar, Terungkap fakta listrik gratis 450 VA tidak merata di daerah ini PLN beberkan alasannya, 16 April 2020, https://kaltim.tribunnews.com/2020/04/16/terungkap-fakta-listrik-gratis-450-va-tak-merata-di-daerah-ini-pln-beber-alasannya
Tempo, Bansos salah sasaran kades mengadu pada Ganjar, 2 Agustus 2021, https://nasional.tempo.co/read/1490033/bansos-salah-sasaran-kades-mengadu-pada-ganjar
TNP2K, About, http://www.tnp2k.go.id/about/about-tnp2k
The World Bank in Social Protection, https://www.worldbank.org/en/topic/socialprotection/overview
VOI, Jokowi Anyone can join the pre employment card program even students who drop out, 17 March 2021, https://voi.id/en/economy/39361/jokowi-anyone-can-join-the-pre-employment-card-program-even-students-who-drop-out
World Health Organization, Regional Office for South-East Asia. The Republic of Indonesia health system review. Health systems in transition. Vol-7, Number -1, 2017.
Worldomoter, Indonesia coronavirus cases, per 22 July 2021, https://www.worldometers.info/coronavirus/country/indonesia/
Yunindita Prasidya, Data Standardization poses challenges for satu data Indonesia, Jakarta Post,  6 August 2020, https://www.thejakartapost.com/news/2020/08/06/data-standardization-poses-challenge-for-satu-data-indonesia-plan.html
[1] It is reported the government policy to adopt Java –Bali Emergency Enforcement of restrictions on community activities (PPKM darurat) for two weeks from 3 July 2021 to 20 July 2021 as the response to contain the spread of the virus.[1] It was extended again until 2 of August 2021 as the active cases were still high almost 50.000 cases in a day on 22 July 2021 and more than 1000 deaths per day.[1]  PPKM level 4 to 3 has been extended in Java and Bali and outside Java and Bali until 20 September 2021 to slow down the spread of the deadly  virus as cases drop from peak. Movement restrictions have bigger implications to the poor both in urban and rural areas.
[2]Fikra Nurul Ulya, BPS: Ada 27,54 Juta Penduduk Miskin di Indonesia Hingga Maret 2021, Kompas, 15//2021
https://money.kompas.com/read/2021/07/15/143633326/bps-ada-2754-juta-penduduk-miskin-di-indonesia-hingga-maret-2021?page=all
[3] The National Statistic Agency (BPS) has reported an increase of unemployment by 6,86 percent as result of movement restriction this February 2021 compared to February 2020 only 4,9 percent.[3] BPS noted that poverty also increased during September 2019 to September 2020, 2,75 million people jumped into the poverty line.
[4] Kate Lamb, To Allard,  Stanley Widianto, Don’t Get Sick Indonesia’s Poor Miss out on COVID care, July 19, 2021, https://www.reuters.com/world/asia-pacific/dont-get-sick-indonesias-poor-miss-out-covid-care-2021-07-19/
[5] I Nyoman Sutarsa, Atin Prabandari, Fina Triyati, No Work No Money how Self  Isolation due to COVID-19 Punishes the poor in Indonesia, The conversation, March 20, 2020, https://theconversation.com/no-work-no-money-how-self-isolation-due-to-covid-19-pandemic-punishes-the-poor-in-indonesia-134141
[6] The World Bank in Social Protection, https://www.worldbank.org/en/topic/socialprotection/overview
[7] Asep Suharyadi, Vita Febriany, Athia Yumna, Expanding Social Security in Indonesia, The process and Challenges, 2014, https://media.neliti.com/media/publications/639-EN-expanding-social-security-in-indonesia-the-processes-and-challenges.pdf
[8] Lani Diana Wijaya, 14,2  persen penemrima bansos tunai sebut Rp 600 ribu hanya cukup untuk 3 hari, Tempo, 26 July 2021, https://metro.tempo.co/read/1487341/142-persen-penerima-bansos-tunai-sebut-rp-600-ribu-hanya-cukup-untuk-3-hari
[9]Bisnis, Kemensos usulkan pengurangan KPM BNPT jadi 185 juta keluarga,3 September 2020  https://ekonomi.bisnis.com/read/20200903/12/1287002/kemensos-usulkan-pengurangan-kpm-bpnt-jadi-185-juta-keluarga
[10] Marchio Irfan Gorbiano, COVID-19 crises exposes holes in social aids disbursement May 19, 2020, https://www.thejakartapost.com/news/2020/05/19/covid-19-crisis-exposes-holes-in-social-aid-disbursement.html
[11] Ibid.
[12]Kemensos, Kemensos salurkan bansos uang tunai untuk 9 juta kpm, 10 Agustus 2020 https://kemensos.go.id/kemensos-salurkan-bansos-uang-tunai-untuk-9-juta-kpm
[13] Tempo, Bansos salah sasaran kades mengadu pada Ganjar, 2 Agustus 2021, https://nasional.tempo.co/read/1490033/bansos-salah-sasaran-kades-mengadu-pada-ganjar
[14] Norman Harsono, Jakarta Post April 1, 2020, Jokowi announces free Electricity discounts for households hardest hit by COVID-19, https://www.thejakartapost.com/news/2020/03/31/jokowi-announces-free-electricity-discounts-for-households-hardest-hit-by-covid-19-impacts.html
[15] Ibid.
[16] VOI, Jokowi Anyone can join the pre employment card program even students who drop out, 17 March 2021, https://voi.id/en/economy/39361/jokowi-anyone-can-join-the-pre-employment-card-program-even-students-who-drop-out
[17] Bahar, Pre-employment card tool develop Indonesian Human resources during covid-19, https://www.bahar.co.id/index.php/whats-new/whats-new/pre-employment-card-tool-develop-indonesian-human-resources-during-covid-19
[18] TNP2K, About, http://www.tnp2k.go.id/about/about-tnp2k
[19]Syaiful Syafar, Terungkap fakta listrik gratis 450 VA tidak merata di daerah ini PLN beberkan alasannya, 16 April 2020, https://kaltim.tribunnews.com/2020/04/16/terungkap-fakta-listrik-gratis-450-va-tak-merata-di-daerah-ini-pln-beber-alasannya
[20] Ian Wilson, COVID-19 inequality  and Jakarta’s Urban Poor Resilient but at great risk https://indonesiaatmelbourne.unimelb.edu.au/covid-19-inequality-and-jakartas-urban-poor-resilient-but-at-great-risk/
[21] Devina Heriyanto, QA BPJS Kesehatan health for all Indonesian, The Jakarta Post, 17 April 2018, https://www.thejakartapost.com/academia/2018/04/06/qa-bpjs-kesehatan-health-for-all-indonesians.html
[22] Ardila Syakriah, In virus stricken Indonesia, Many can not afford to self- quarantine at home, https://www.thejakartapost.com/news/2020/09/15/in-virus-stricken-indonesia-many-cant-afford-to-self-quarantine-at-home.html
[23] Medical Tourism Magazine, Indonesia’s Failing Health care industry and How Medical Tourism can Help, https://www.magazine.medicaltourism.com/article/indonesias-failing-healthcare-industry-and-how-medical-tourism-can-help
[24] World Health Organization, Regional Office for South-East Asia. The Republic of Indonesia health system review.
Health systems in transition. Vol-7, Number -1, 2017.
[25] Ibid.
[26] KSI, Improving the National Health Insurance Scheme to Achieve Universal Health Coverage, 4/5/2019, https://www.ksi-indonesia.org/en/wawasan/detail/4-improving-the-national-health-insurance-scheme-to-achieve-universal-health-coverage
[27] Laely Nurhidayah and Riyanti Djalante, Governance Responses to COVID-19  their implication on Food Security in Indonesia in Rajib Shaw and Anjula Gurtoo, Global Pandemic and Human security: Technology and  Development Perspective, Book Chapter Springer Nature,  up coming 2021
[28] Ibid.
[29] The National Development Planning Ministry (Bappenas) is responsible for overall development coordination, which includes the management of financial/technical assistance from Development Partners.
[30] The Geospatial Information Agency is a Non-Ministerial Government Agency that is under and is responsible to the President. BIG is led by a Chief. Geospatial Information Agency has the task of carrying out governmental tasks in the field of Geospatial Information.
[31] Faiq Hidayat, Harris Fadhil, Hakim korupsi e-ktp Rugikan negara 23 trilliun, 24 April 2018 https://news.detik.com/berita/d-3987822/hakim-korupsi-e-ktp-rugikan-negara-rp-23-triliun
[33] Yunindita Prasidya, Data Standardization poses challenges for satu data Indonesia, Jakarta Post,  6 August 2020, https://www.thejakartapost.com/news/2020/08/06/data-standardization-poses-challenge-for-satu-data-indonesia-plan.html