Indonesia’s New Government & Their Digital Approach

  • e-MITRA
  • November 3, 2014
Indonesia’s New Government & Their Digit

After a long campaign battle, Joko Widodo was sworn-in and inaugurated as the seventh president of the Republic of Indonesia on October 20, 2014. Now that Widodo is officially in office, it’s time to take a look at his approach to digital services.

President elect Joko Widodo’s inauguration was marked with a convoy at Jalan Thamrin, Central Jakarta, where thousands of people flocked to greet the new leader.

The national celebration was met with a surge in confidence and enthusiasm, as the Indonesian Composite Index (IHSG) jumped 11.58 points, or 0.23 percent, while Rupiah strengthened against the US dollar.

The good news continues. In addition to receiving a positive response from the market, the new government has also announced several key development priorities they call the Nawa Cita, or “Nine Strategic Programs of Priority.”The Nawa Cita agenda prioritizes efforts like building a sense of security among all citizens, strengthening competitiveness in the global market, and revolutionizing national character building.

As part of this bureaucratic reform, Joko Widodo, or Jokowi, also mentioned a pilot project for integrated mobile services (including immigration, copyright-patent licensing and civil registration), and the government has outlined a set of official processes to ensure the quality delivery of their proposed actions.

Implementing e-Payments for Government Aid

There are several key developments that underscore the government’s effort to eradicate poverty, including the Poverty Reduction Program, Village Assistance Program, and the implementation of e-payments in distributing government aid.

One of the notable government aid initiatives is the Family Hope Program (PKH), established to reduce poverty in eastern Indonesia by sending conditional cash transfers from the Ministry of Social Affairs to 7% of the poorest families. The disbursement of PKH is usually channeled through the post office.

Bank Indonesia recently tested the disbursement of PKH using electronic money and digital financial service (DFS) agents in four provinces –DKI Jakarta, West Java, East Java, and East Nusa Tenggara. For the pilot, 1,860 poor families are using DFS agent services through Bank Mandiri and Bank Rakyat Indonesia (BRI).

As stated by Deputy Governor of Bank Indonesia, Ronald Waas, in a recent press release, the system is not only increasing transparency and accountability, but also supports the National Non-Cash Movement to improve national economic efficiency (Gerakan Nasional Non Tunai, or GNNT).

Creating a Smart Card for Students

On the education side, the new government intends to launch a 12-year compulsory education with Smart Card Indonesia (Kartu Indonesia Pintar, or KIP). KIP is an education-allowance program that will provide free education and educational needs for students in elementary, junior and high schools.

With KIP, government aid will be transferred straight to students’ bank accounts. For pilots, Jokowi and his team are planning to implement KIP at the two provinces in Indonesia thatneed this aid the most.

KIP follows the example of Smart Card Jakarta (Kartu Jakarta Pintar or KJP), launched back in 2012.

Introducing Universal Health Coverage & Enhanced Health Services

Underserved Indonesians have never had better health coverage. Now, thanks to the Jaminan Kesehatan Nasional (JKN) program, poor citizens are offered free universal health insurance. To minimize cost and extend health care, the government is relying on technology to ensure that secluded health clinics can request online consultations.

There’s also a plan to roll out a Health Card (Kartu Indonesia Sehat or KIS) allowing patients to be treated anywhere across the country. KIS will be similar to the existing Jakarta Health Card (Kartu Jakarta Sehat or KJS), which was originally implemented by Jokowi when he was Jakarta’s governor. The government is planning to create an online database of all registered cardholders.

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