Ministry to boost social safety net programs as VAT rate increases

Jakarta (ANTARA) - The Ministry of Social Affairs will increase social safety net programs and accelerate social welfare programs to anticipate the increase in value-added tax (VAT) rate and the plan to limit subsidies.

In the ministry's written statement here on Monday, Social Affairs Minister's expert staff, Andy Kurniawan, noted that regular social assistance programs will be strengthened while awaiting additional social programs planned to be provided by the government.

"Until now, additional social assistance is still under discussion. It is hoped that it can be a cushion to help reduce the expenditure burden of the community, especially poor families," he remarked.

He outlined that various regular social assistance programs that the ministry will disburse include the Family Hope Program (PKH), targeting 10 million beneficiary families, whose distribution will be brought forward to early 2025.

In addition, the Non-Cash Food Assistance program is provided for 18.8 million beneficiary families, with distribution every month, starting early 2025.

Kurniawan further remarked that starting in early 2025, the Ministry of Social Affairs will cover free nutritious meal assistance for 36 thousand people with disabilities and 101,000 older adults by involving local communities to boost the local economy.

He noted that during the era of President Prabowo Subianto and Vice President Gibran Rakabuming Raka's government, as many as 270 thousand orphans would be assisted every month.

In addition to offering social assistance, amid the increase in the VAT rate, empowerment efforts will be made to boost the income of poor families through business capital assistance for those no longer beneficiaries of the government's assistance program.

He affirmed that this initiative is targeted to cover 480 thousand beneficiary families.

He noted that the ministry will carry out those programs based on the Integrated Social Welfare Database.

He stated that the programs are expected to serve as a strategic step to support the government in achieving the poverty reduction target.