OECD - Social Protection System Review of Indonesia
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OECD (2019), Social Protection System Review of Indonesia , OECD Development Pathways, OECD Publishing, Paris.
https://doi.org/10.1787/788e9d71-en
Social protection in Indonesia has evolved as fast as the country itself over the past two decades. Today, the Government of Indonesia (GoI) recognises social protection as being central to its economic, political and social development as well as its ambition of becoming one of the worlds ten largest economies by 2030. Social protection is at the core of the 2015-19 Medium Term Development Plan (RPJMN), which articulates a vision for inclusive economic growth that promotes equality of income and opportunity as a precondition for escaping the middle-income trap and fulfilling the countrys potential.
This Social Protection System Review of Indonesia (SPSR) is produced by the European Union Social Protection Systems Programme (EU-SPS) in close collaboration with the Ministry of National Development Planning (BAPPENAS) and with the broader support of the GoI as well as development partners. The SPSR intends to inform next Indonesias RPJMN for the period 2020-24 as well as related policy processes.
The SPSR examines how social protection has evolved since the Asian Financial Crisis. It maps social protection provision and analyses the impact of key programmes. It also examines the financing of social protection and the challenges of harmonising programme implementation and poverty-targeting across Indonesias vast geographical area.
The SPSR also focuses on the GoIs progress in closing gaps in social protection provision and achieving greater coherence and co-ordination amongst different programmes, institutions and levels of government in order to create a social protection system. This is essential for reducing poverty and high levels of inequality as well as optimising financial resources. New challenges, such as shifting demographics, climate change and the fourth industrial revolution, heighten the urgency of strengthening the social protection system.
Numerous stakeholders in the GoI, development partners involved with social protection, and representatives from academia and broader civil society worked together to develop the recommendations in this report. These address challenges such as enhancing the impact of social assistance on poverty, expanding social insurance coverage, optimising the institutional and information architecture for social protection, and mitigating gender imbalances. We hope this review will contribute to further enhancing social protection in Indonesia, maximising its potential to promote inclusive growth and thus underpin the countrys progress towards achieving prosperity for all Indonesians.
Mario Pezzini
Director of the OECD Development Centre
and Special Advisor to the OECD Secretary-General on Development
The Social Protection System Review of Indonesia was prepared by the Social Cohesion Unit of the OECD Development Centre as part of the European Union Social Protection Systems Programme (EU-SPS).
The team was led by Alexandre Kolev, Head of the Social Cohesion Unit, under the guidance of Naoko Ueda and Mario Pezzini, Director of the OECD Development Centre and Special Advisor to the OECD Secretary-General on Development. The report was drafted by Alexander Pick and Caroline Tassot, drawing on a background paper prepared by the Economic Policy Research Institute. Justina La provided assistance at every stage.
The report was reviewed by Pak Pungky Sumadi, Pak Maliki and Ibu Vivi Yulaswati from the Indonesian Ministry of National Development Planning (BAPPENAS), Christine Lewis from the Economics Department of the OECD and Marco Schaefer (World Bank), all of whom provided extremely valuable feedback. Thank you.
Particular thanks are due to Pak Maliki, who has been an outstanding source of guidance and support for EU-SPS activities in Indonesia, particularly those related to this report. Massimo Geloso Grosso, head of the OECDs Jakarta office, has also provided valuable assistance. Anja Hornig (GFA Consulting Group) has also been an excellent source of support during the compilation of the report.
The recommendations contained in this report benefited considerably from presentations and comments at a workshop held at BAPPENAS in Jakarta on 17 October 2018. Many thanks to all who participated.
The OECD Development Centres publication team, led by Delphine Grandrieux, produced the publication. The cover was designed by Aida Buenda.
The European Union Social Protection Systems Programme is co-financed by the European Union, the OECD and the Government of Finland.
This publication has been produced with the assistance of the European Union and Finland. The contents of this publication are the sole responsibility of the OECD and can in no way be taken to reflect the views of the European Union or the Government of Finland.
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