"This is a demand. Today, we want greater transparency, accessibility for everyone, and greater efficiency. There will be many benefits if we can digitize the distribution of social assistance," Minister of Social Affairs Saifullah Yusuf stated in Jakarta on Tuesday.
Payment ID is a nine-character unique identifier generated from population data based on the National Identification Number. It is designed to consolidate an individual's financial information, from bank accounts to e-wallet accounts.
According to Bank Indonesia's study, Payment ID will also complement and strengthen financial sector analysis, particularly in credit or loan disbursement, but will not replace the Financial Services Authority's (OJK's) Financial Information Services System (SLIK).
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With Payment ID, every financial institution will still require active consent from customers, as data owners, to obtain more accurate customer profiles.
Minister Yusuf acknowledged that several challenges remain in digitalizing aid distribution, given that many social assistance recipients are elderly and unfamiliar with technology. Hence, the ministry will continue to adapt distribution methods, including through social assistance facilitators.
He explained that Payment ID will maintain the same distribution mechanisms as before, through both the Association of State-Owned Banks and PT Pos Indonesia for the frontier, disadvantaged, and outermost (3T) regions.
"We are seeking the best solution because, so far, only PT Pos Indonesia can reach the 3T areas, or areas without banking infrastructure. Hence, we will try it first, we will test it, and we will investigate it further," he remarked.
He expressed hope that the distribution of social assistance via Payment ID would make it easier for the government, banks, and other authorities to verify that aid reaches the intended recipients.
"Hence, hopefully, in the future, if this assistance is for purchasing basic necessities, there will be a barcode, and it can only be used to purchase basic necessities. Later, more or less, but this is still being tested, so let us wait and see. We are part of the team there."
"The National Economic Council (DEN) has formed a team to digitize the distribution of social assistance from various ministries, one of which is being tested using data from the Ministry of Social Affairs," he explained.
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Translator: Lintang Budiyanti Prameswari, Martha Herlinawati S
Editor: Rahmad Nasution
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