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Executive summary
Background of the study
The COVID-19 pandemic has left 3-5 million people newly unemployed and created up to 3.75 million new poor people. Since April 2020, the Indonesian government has modified the two largest safety net programs, Program Keluarga Harapan (PKH)—a conditional cash transfer program—and Kartu Sembako, the in-kind food subsidy program, to provide a cushion for low-income families.
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The Ministry of Social Affairs (MoSA) engaged MSC to study the impact of the COVID-19 pandemic on PKH beneficiaries and provide insights into the beneficiaries' behavior and challenges during the pandemic. The study also provides policy recommendations to improve the program during both the pandemic and other future crises. The field survey for the study was done in September and October with a mixed method research that included inperson quantitative interviews and in-depth qualitative interviews with 1,200 beneficiaries and 10 PKH facilitators.
Findings related to economic impact and program awareness
68% of beneficiaries have experienced a decrease in household income, and 34% of the beneficiaries took a loan to manage their economic condition during the pandemic.
84% of the respondents were aware about the new monthly disbursement schedule. However, their awareness on the other types of PKH modification is low. Facilitators are the main source of information about the modified scheme.
