Indonesia: Wage subsidy program may fall short of target due to data issues

  • The government’s wage subsidy program, earmarked to reach 15.7 million people in an effort to boost household spending and cushion the economic impacts of the pandemic, might fall short of its target as data validity remains a major issue.
  • National Team for Accelerated Poverty Reduction (TNP2K) working group head for economic capacity enhancement policy, RM Purnagunawan, noted that invalid recipient data and potential missed targets could hinder the program, preventing it from reaching its goals.
  • Data issues could occur for several reasons, he went on to explain. For one, companies might work around not paying some of their employees’ social security benefits by failing to submit a valid account of their employees’ database.
  • For some workers who have moved from one place of residence to another, their civil registry data might be considered invalid due to inconsistencies in the database, preventing them from receiving the social assistance. For other workers, they may be ineligible to receive the subsidy for not owning a personal bank account, Purnagunawan said.

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