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Social Protection System Review of Indonesia

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Indonesia has made impressive progress in reducing income inequality and improving living standards since the Asian Financial Crisis but the decline in poverty has slowed in recent years while inequality has risen and a large part of the population remains vulnerable. The Government of Indonesia has recognised the potential of social protection to address these challenges and to underpin a long-term development strategy based on more inclusive economic growth. As a consequence, social assistance programmes have grown significantly in recent years while social insurance has undergone major reforms. The Government is gradually realising its vision of a system of social protection, based on comprehensive and coherent coverage for all age groups.The Social Protection System Review of Indonesia charts the evolution of social protection. It explores the current context for social protection and how this is likely to evolve in the future, analyses the extent to which existing programmes are aligned to those needs and how effective these programmes are at reducing poverty. It also examines the financing of social protection. Finally, it proposes policies to enhance the social protection system across a number of dimensions, including programmes, institutions, financing and information architecture.

English

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Social protection coverage

Social protection in Indonesia has evolved rapidly since the Asian Financial Crisis, through both a major scale-up of social assistance and “big bang” reforms to social insurance. This chapter charts this trajectory over the past two decades, outlining the main economic, political and legislative drivers of social protection before examining in greater detail the main programmes that have been established during this period. It provides an inventory of existing schemes, analyses their key design features and scale of operation, and discusses how well they meet the present and future needs identified in Chapter 1, as well identifying major gaps in this regard.

English

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