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Indonesia to Trial Digital Social Assistance Payments in Early 2027

Nurul Darari by Nurul Darari
September 30, 2026
in Business, Indonesia
Reading Time: 2 mins read
Indonesia to Trial Digital Social Assistance Payments in Early 2027

Indonesia to Trial Digital Social Assistance Payments in Early 2027

Jakarta, ThedailyID — Indonesia plans to test digital social assistance distribution in the first quarter of 2027 as the government works to improve beneficiary data.

Luhut Binsar Pandjaitan, chairman of the Committee for Accelerating Government Digital Transformation and the National Economic Council, said the government aims to complete the data process by the end of 2026.

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“For 2027, we will distribute social assistance. We will try to distribute it in the first quarter of next year, but that depends on our progress through the end of the year,” Luhut said at the Social Affairs Ministry in Jakarta on Wednesday, September 30.

The government is currently integrating beneficiary data from various ministries and agencies. It is also using artificial intelligence (AI) to support the process.

Population data from the Home Affairs Ministry’s Directorate General of Population and Civil Registration, known as Dukcapil, is part of the integration.

Home Affairs Minister Tito Karnavian said around 98% of Indonesia’s 288 million residents are already registered with Dukcapil. The government is now updating the population data before matching it with information from other agencies.

Luhut said AI will also help improve the classification of social assistance beneficiaries into different economic groups, known as deciles.

“98 percent of the population is already in Dukcapil. We are now updating all of it. With AI, we will also improve the deciles because ministries and agencies can now communicate with each other through AI,” Luhut said.

The government aims to complete the required data collection by the end of 2026. It will then begin testing the digital distribution system in the first quarter of 2027.

Luhut said the final number of beneficiaries will depend on the registration and data-updating process. The government wants to ensure that eligible people do not get left out of the social protection system.

Social Affairs Minister Saifullah Yusuf, also known as Gus Ipul, said the digitalization program will not only change how aid reaches recipients. It will also involve registering beneficiaries again.

According to Gus Ipul, some existing recipients may no longer meet the eligibility criteria. At the same time, people who believe they need assistance will have an opportunity to register.

“Digitalizing social assistance is about re-registering recipients and giving the wider public an opportunity to register if they want to receive assistance,” Gus Ipul said.

The government is also opening social assistance data to the public. Through the system, people can review their data and submit suggestions or objections.

Gus Ipul said the move follows President Prabowo Subianto’s direction to make social protection data more transparent. The digitalization process has been underway gradually for around two years with several ministries and agencies.

The government previously targeted the rollout of its digital social protection system for October 2026. It also planned to begin testing social assistance payments through recipients’ bank accounts in the first quarter of 2027.

Tags: AIdigital transformationIndonesiaLuhut Binsar PandjaitanSocial AssistanceSocial ProtectionThedailyID
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