Principles and Approaches to Targeting: with Reference to the Indonesian Social Safety Net Programs

Sudarno Sumarto • Sudarno Sumarto • Asep Suryahadi • Asep Suryahadi
Working Paper SMERU Research Institute • July 2001

Abstract

The potential benefits of accurate targeting are substantial because public expenditures can be concentrated to the needy, thereby saving money and improving program efficiency. however, targeting also entails administrative costs associated with identifying, reaching, and monitoring potential beneficiaries. in addition, there are also potential costs in the form of disincentive costs, stigma costs, and political economy costs. the experience of the recent Indonesian social safety net programs shows that targeting was one of the most difficult problems in the implementation of these programs. as a result, the programs were plagued by the twin problems of undercoverage and leakage.

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SMERU Research Institute

Since its establishment in 2001, SMERU has been a leader in poverty and inequality research in In... see more