Evaluation of the Unconditional Cash Transfer in Indonesia

Policy brief SMERU Research Institute • December 2006 Indonesia


The government of Indonesia implemented an unconditional cash transfer (UCT) program in October 2005 in order to mitigate the impact of a removal of fuel subsidy in the same month. The program is targeted at 15 million poor households, determined by BPS (Statistics Indonesia) using a proxy means testing method. Each household receives Rp1.2 million for one year (roughly the country's current per capita GDP), which is disbursed quarterly in equal amounts. Following the SMERU Research Institute's rapid appraisal on the cash transfer program conducted in West and North Jakarta, the government's National Development and Planning Agency (Bappenas) and the World Bank commissioned SMERU to conduct an impact evaluation of the UCT program. The study was undertaken in five kabupaten (district) around the country in November 2005 using Focused Group Discussion (FGD). In total, SMERU conducted 27 FGDs with district officials, village officials, and recipient and nonrecipient households.




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