"It is clear that it's not allowed for (buying) cigarettes, (and) it is not allowed for (purchasing) liquor. (It is only) for basic needs," Social Affairs Minister Tri Rismaharini said after attending a meeting to discuss the transfer of fuel subsidies with President Joko Widodo (Jokowi) here on Monday.
She said that initially, it was planned that each of the recipients would receive the assistance in four tranches of Rp150 thousand.
However, her ministry has decided to distribute it in two tranches of Rp300 thousand each, in collaboration with state-run postal company PT Pos Indonesia.
The company will send reports regarding recipient data to the ministry after disbursing the assistance, including photos of the recipients and their houses, Rismaharini informed.
“The (recipients’) data will not (only be verified) by address and by name, but also (with) the photos and the condition of the house. For example, (if) there is a complaint because they (the recipients) forget (that they) already received (the aid), there will be photos (as proof)," she explained.
Earlier, Finance Minister Sri Mulyani Indrawati had informed that the total aid from the diversion of fuel subsidies amounts to Rp24.17 trillion and will be divided into three types of assistance.
The first will be Rp12.4 trillion in additional direct cash social assistance for 20.65 million recipients.
Furthermore, the government will provide wage subsidy assistance to 16 million workers earning a maximum salary of Rp3.5 million per month.
The total budget for the wage subsidy aid is Rp9.6 trillion, and it will be distributed in a single tranche of Rp600 thousand to each recipient.
Meanwhile, the third assistance is intended to reduce the burden of the fuel subsidies transfer on the transportation sector.
The aid will be sourced from 2 percent of local governments’ general transfer funds, namely the general allocation fund (DAU) and revenue sharing funds (DBH), worth Rp2.17 trillion.
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