President changes system of social aid distribution

Jakarta (ANTARA News) - President Joko Widodo has decided to change social aid distribution system to avoid cash handouts.

Finance Minister Bambang Brodjonegoro said at the presidential office here on Friday that President Jokowi (Joko Widodo) also demanded that the system completes its implementation within the next five years.

"The Presidents resolution is that within the next five years, all kinds of social aid for the poor must be distributed through banks and not in cash form," he said after accompanying the members of the Board of Commissioners of the Financial Service Authority (OJK) to a meeting with the President at the latters working office in Merdeka Palace.

He revealed that the OJK expressed its commitment to create a micro-insurance scheme at community level. For example, he explained, if farmers suffer a harvest failure, then they may get a low-premium insurance cover.

OJK chairman Muliaman Hadad noted he presented OJKs tasks and achievements as well as current global economic conditions to the President at the meeting.

"We must also anticipate global policies and not only banking and capital market performances," he added.

He stated, "the resilience of national finances is good. We have also conducted stress tests and taken anticipatory measures. Todays index is positive, and it is among the highest in the Asean region."

Muliaman pointed out that he also gave a report on the efforts to educate the people about financial services.

"We also reported about the conditions of insurance and pension funds, which are all good and have huge growth prospects. With regard to public education, we wish to make the financial industry more inclusive so that the people will be closer to the sources of funds. This effort is also part of educating the public. Many people have already become victims of illegal financial services," he said.(*)

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