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Social Protection in Indonesia:Past Experiences and Lessons for the Future

Author

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  • Sumarto, Sudarno
  • Bazzi, Samuel

Abstract

Prior to the Asian financial crisis, social protection in Indonesia was largely based on informal arrangements. When the country sank into a deep social and economic crisis in 1998, the government had no alternative but to create new, more formal social safety nets explicitly aimed at helping the chronic poor and vulnerable non-poor cope with the impact of the crisis. A comprehensive set of safety net programs covered food security, employment creation, education, health, and community empowerment. Several years after the crisis as the economy slowly recovered and welfare stabilized around pre-crisis levels, the government redesigned several of these programs while discontinuing others. Throughout this latter, post-crisis period, the government also implemented a range of new social protection programs, including several conditional and unconditional cash transfer programs, to replace highly regressive fuel subsidies. Recently, the government has formed a National Team for the Acceleration of Poverty Reduction (TNP2K) with the mandate to reduce poverty incidence to 8% by 2014. This essay analyses Indonesia‟s experience with social protection during and after the crisis, drawing key lessons for the future of social protection policy in Indonesia.

Suggested Citation

  • Sumarto, Sudarno & Bazzi, Samuel, 2011. "Social Protection in Indonesia:Past Experiences and Lessons for the Future," MPRA Paper 57893, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:57893
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    References listed on IDEAS

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    Cited by:

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    2. Tohari, Achmad & Parsons, Christopher & Rammohan, Anu, 2017. "Targeting Poverty under Complementarities: Evidence from Indonesia's Unified Targeting System," IZA Discussion Papers 10968, Institute of Labor Economics (IZA).
    3. World Bank, 2013. "Indonesia : Urban Poverty and Program Review," World Bank Publications - Reports 16301, The World Bank Group.
    4. Sumarto, Sudarno & de Silva, Indunil, 2013. "Poverty-growth-Inequality Triangle: The Case of Indonesia," MPRA Paper 57135, University Library of Munich, Germany.
    5. Lau, Siew Yee & Parinduri, Rasyad & Lee, Yoong Hon, 2019. "Does Social Health Insurance Help Owners of Micro- and Small Firms Cope with Family Hardships? Evidence from Indonesia," MPRA Paper 95295, University Library of Munich, Germany.

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    More about this item

    Keywords

    Social Protection; Asian Financial Crisis; Indonesia.;
    All these keywords.

    JEL classification:

    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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