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SUMMARY REPORT ON THE 2016 PILOTNONCASH DISBURSEMENTS OF FOOD ASSISTANCE AND SOCIAL ASSISTANCE
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SUMMARY REPORT ON THE 2016 PILOTNONCASH DISBURSEMENTS OF FOOD ASSISTANCE AND SOCIAL ASSISTANCE
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SUMMARY REPORT ON THE 2016 PILOT
NONCASH DISBURSEMENTS OF FOOD ASSISTANCE AND SOCIAL ASSISTANCE
ISBN: 978-602-275-191-5
First Print, April 2019
Copyright Protected by Law
© 2019. Tim Nasional Percepatan Penanggulangan Kemiskinan (The National Team for
the Acceleration of Poverty Reduction)
You are permitted to copy, distribute and send this work for non-commercial purposes.
To request a copy of this publication or further information about this publication, please
contact the Social Assistance Policy Working Group (Kelompok Kerja Kebijakan Bantuan Sosial),
TNP2K Secretariat.
THE NATIONAL TEAM FOR THE ACCELERATION OF POVERTY REDUCTION
Secretariat of the Vice President of the Republic of Indonesia
Jl. Kebon Sirih No. 14, Central Jakarta 10110
Telephone : (021) 3912812
Faximile : (021) 3912511
E-mail : pokjabansos@tnp2k.go.id
Website : www.tnp2k.go.id
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TABLE OF CONTENTS
Abbreviations and Acronyms
PILOT DESIGN
PILOT PREPARATION
PILOT IMPLEMENTATION
I. PreparationoftheBeneficiaryDataandtheMerchants/BankAgents
PreparationofMerchants/Agents/Stalls/Shops
II. Socialisation,DeliveryofInvitationstoBeneficiaries,andEducation
III. Registration, Account Opening, and Activation
IV. DisbursementofBenefitsthroughBankAccounts
V. Use of Benefits: Exchanging Electronic Vouchers for Food Assistance
andElectronicMoneyWithdrawal
MONITORING AND EVALUATION RESULTS
RECOMMENDATIONS
a. PreparingtheBeneficiaryData
b. Socialisation,Education,andNotificationtoBeneficiaries
c. TransactionModes/Devices,Registration,andActivation
d. AvailabilityandDistributionofAgents/Stalls/Shops
e. ImprovingtheEffectivenessofImplementingtheNoncashMechanism
f. Exchanging Electronic Food Vouchers and Withdrawing Electronic
Money
g. ServicetoBeneficiaries
h. Involvement of the Local Government
i. ImprovingTransactionSystemandInfrastructureattheAgent/Merchant
Level
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5-9
9-12
12-30
30-42
43-47
12-15
15-17
17-20
20-26
26-27
27-30
43
43-44
44
44-45
45-46
46
46
46-47
47
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FIGURES
Figure 1
NoncashDisbursementSchemeforFoodandSocialAssistancePrograms
Figure 2
StagesofNoncashDisbursementsofSocialandFoodAssistances
TABLES
Table 1
PilotImplementingPartnersandNoncashTransactionDevices
Table 2
Location, Banking/Telco Partner, Number of Beneficiaries, Socialisation
Schedule
Table 3
StrengthsandLimitationsofPilotTransactionModes
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5
7
14
36-42
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ABBREVIATIONS AND ACRONYMS
APBD Anggaran Pendapatan dan Belanja Daerah
(Regional Revenue and Expenditure Budget)
ATM AutomatedTellerMachine
Bappenas Badan Perencanaan Pembangunan Nasional
(NationalDevelopmentPlanningAgency)
BI Bank Indonesia
Burekol Pembukaan rekening secara kolektif
(bulk or collective account opening)
CD CompactDisc
CIF Customer Information File
DPM Daftar Penerima Manfaat(ListofBeneficiaries)
EDC ElectronicDataCapture
e-KTP electronicIDcard
E-Warong KUBE Electronic cooperative stall
G2P Government-to-Person
Kelurahan Equivalent to a village (in an urban setting)
KemenkoPMK Kementerian Koordinator Bidang Pembangunan Manusia dan
Kebudayaan(CoordinatingMinistryofHumanandCultural
Development)
Kemenkominfo Kementerian Komunikasi dan Informatika
(MinistryofCommunicationandInformatics)
Kemensos Kementerian Sosial (MinistryofSocialAffairs/MoSA)
KK Kartu Keluarga (Family Registration Card)
KSP Kantor Staf Presiden(PresidentialStaffOffice)
KTP Kartu Tanda Penduduk(ResidentIDCard)
KYC Know-Your-Customer
Laku Pandai Layanan Keuangan Tanpa Kantor dalam Rangka Keuangan Inklusif
(Branchless Banking Services through Agents, program of OJK)
Musdes/muskel Musyawarah desa/kelurahan(village/kelurahan meeting)
NFC Near-Field Communications
NIK Nomor Induk Kependudukan(Identity(ID)Number)
OJK Otoritas Jasa Keuangan (Financial Services Authority)
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OTP One-Time Password
Perum BULOG Perusahaan Umum BULOG (State-owned Company for Food
Logistics)
PIC Person-in-Charge
PIN PersonalIdentificationNumber
PIP Program Indonesia Pintar (Smart Indonesia Program)
PKH Program Keluarga Harapan(HopefulFamilyProgram)
QR Quick Response (Code)
Raskin Subsidi Beras bagi Masyarakat Berpendapatan Rendah
(Rice Subsidy Program for the Poor)
RT Rukun Tetangga (neighbourhood units)
RW Rukun Warga (community units)
SIAK Sistem Informasi Administrasi Kependudukan
(population administrative information system)
SIM SubscriberIdentificationModule
SKU Surat Keterangan Usaha (Business License)
Telco Telecommunication company
Tikor Raskin Pusat Tim Koordinasi Raskin Pusat (Central Raskin Coordination Team)
TKPKD Tim Koordinasi Penanggulangan Kemiskinan Daerah
(Regional Poverty Reduction Coordination Team)
TNP2K Tim Nasional Percepatan Penanggulangan Kemiskinan
(National Team for Accelerating Poverty Reduction)
1
SUMMARYREPORT
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1. The Rice Subsidy Program for the Poor (Program Subsidi Beras bagi Masyarakat
Berpendapatan Rendah/Raskin) is a program that aims to help low-income
groups to maintain their welfare and fulfil food needs, particularly rice.
Consumption of rice is the largest proportion of expenditure for poor households at
nearly30percentandevenalittlefluctuationinthepriceofricewillleadtoafallin
their welfare level.
2. Evaluations by various institutions show that implementation of the Raskin
Program is still far from meeting expectations. The main challenge is the practice
of ‘sharing equally’ —where Raskin rice is also disbursed to household groups
outside those specified in the List of Beneficiaries (Daftar Penerima Manfaat/DPM).
As a result, households that are entitled to receive Raskin only get an average of
7 kg of rice out of the 15 kg they should be entitled to. Another challenge is that
the price exceeds the prescribed price of IDR 1,600 per kilogram. This is due to,
among other reasons, transportation and other costs that must be levied on the
Raskin household beneficiaries. Although the State-owned Company for Food
Logistics (Perum BULOG) is determined to improve the quality of rice, sometimes rice
that is unsuitable for consumption is still found. In addition, delays in distribution often
cause several months-worth of Raskin to be disbursed at once or lump distribution of
two to three months’ worth of distribution. Lump distribution often occurs in remote
areas as well as in regions that have not paid for Raskin rice from previous months.
3. President Joko Widodo has directed that the Raskin program should be reformed.
The president issued this directive at the Limited Cabinet Meeting on Poverty and
EconomicInequalityReductionProgramson16March2016.Thepresidentaskedthat
the Raskin distribution system be changed to a voucher mechanism through gradual
implementation, starting in early 2017. Use of vouchers is intended to enable the
monitoringofRaskindistributionsothatbeneficiariescanobtainthedesiredquality
andtypeofriceatshops/stalls.Asidefromrice,voucherscouldalsobecombinedto
obtain other needs such as eggs. At the limited meeting, the president also directed
that a pilot be conducted in 2016 in preparation for implementation in 2017.
4. At the Limited Cabinet Meeting on Inclusive Finance on 26 April 2016, President Joko
Widodo issued a directive that all social assistance and subsidies be distributed
as a noncash benefit. The noncash disbursement shall use the banking system to
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facilitate control and monitoring. Use of the banking system is expected to encourage
productive behaviour, expand financial inclusion, and accustom people to saving
behaviours.Thepresidentalsodirectedthatthevariouscardsandaccountsfordifferent
social assistance programs be integrated into a single card and a single account.
5. A pilot was to be implemented according to the decision of the Limited Cabinet
Meeting on the Raskin Program on 19 July 2016 at which the president reaffirmed
that Raskin distribution was to be replaced by vouchers. The president directed that
implementationofsuchvouchershouldbefirstpilotedinseveralmunicipalitiesbefore
being implemented in several major municipalities in 2017. “The application of a food
assistance voucher should be tested first in several municipalities and done carefully …
and only then it will be implemented in 2017” and “preparations for delivering the voucher
should be sound, because if the targeted recipients of the voucher are accurate, this can
quickly reduce poverty.”
6. Noncash disbursement is the direct transfer of social assistance/subsidy benefits
from the government to the savings accounts of beneficiaries. Social assistance/
subsidy benefits can be in the form of cash as in the Hopeful Family Program
(Program Keluarga Harapan/PKH) and the Smart Indonesia Program (Program
Indonesia Pintar/PIP) or in the form of goods (Raskin). In using the benefits,
beneficiaries can withdraw cash, purchase goods electronically, or put the money
into savings. For Raskin in particular, an electronic voucher is used to purchase rice
ofadesiredqualityatshops/stallsoftherecipient’schoice.Theelectronicvoucher
is expected to provide many advantages at once. First, accurate targeting, amount,
scheduling, and quality are guaranteed. Second, it gives greater options and control
to the poor in choosing the quality of rice and shops/stalls they will use. Third, it
encourages small retail businesses, both those already connected and those not
connected with the banking system to participate in this program. For retailers,
market merchants, traditional markets, and micro economy actors, in particular, their
involvementintheprogramcanincreasetheirbusinesscapacity.Fourth,beneficiaries
do not have to spend all of their food assistance at a certain time, so it can be saved
for when it is next needed.
SUMMARY REPORT
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Figure 1: Noncash Disbursement Scheme for Food and Social Assistance Programs
6. The main principles in the concept of noncash disbursements of social and food
assistance benefits are:
(1) The assistance/subsidy beneficiary is given/opens a bank savings account
(BasicSavingsAccount)toreceivesocialassistancebenefits;
(2) Benefitsoftheprogramswillbetransferredtothesavingsaccount;
(3) Assistance/subsidy benefit is used through cash withdrawals, electronic
purchasesofgoodsor,specificallyforRaskin,throughelectronicvouchers;
(4) Electronicvouchersareusedforpurchasingriceand/orotheritemsthatwillbe
determinedlaterandcannotbewithdrawnincash;
(5) Assistance/subsidybenefitsintheformofcash—suchasPKHorPIP—canbe
withdrawnincashorspentelectronically;
(6) Assistancebeneficiariescanmakethetransactionsateveryplace(merchants/
agents/stalls/shopsandothers)thatprovidesnoncashtransactions;and
(7) Thereshallbenodeductiononthevalueofbenefitstransferredtothesavings
account. Assistance/subsidy benefits that have not been used will remain in
the savings account and can be accumulated.
Transaction modes/devices for noncash disbursements may be based on: (i) debit
cards; (ii) cellular phones; and (iii) Quick Response (QR) codes through websites. Cellular
phone-basedtransactionmodes/devicescanbeintheformofsubscriberidentification
module(SIM)cardsorNear-FieldCommunications(NFC)technology.
Cashwithdrawal
Electronic-voucher transactions
Transfers to savings account
Other banking transactions
Cash withdrawals/transfers
Transactions at bank branch offices/ATMs
Interbank transfers
Information on payment accounts
• Card-based• SIM Card-based• NFC-based• Website-based
Sub Account/Sub Wallet
Tran
sact
ion
Mo
de
s
Transactions at Merchants
Transactions at Banks
Other assistance/
subsidy programs
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PILOT DESIGN
8. Before the 2017 noncash food assistance program is implemented, a pilot shall
be conducted to provide input for improving the program mechanism at every
stage. Piloting is an important activity considering that the noncash disbursement
mechanism is an innovation that has never been implemented. Through this pilot,
eachstageofthefieldimplementationcanbeobserved,andnecessaryfollow-up
stepsareidentifiedtoimproveefficiencyandeffectiveness.
9. TNP2K conducted a limited pilot of the noncash food assistance from September
to October 2016 with the aim to test the design and mechanism for the consecutive
stages of noncash disbursements of food and social assistances as illustrated in
Figure 2 below:
Figure 2: Stages of Noncash Disbursements of Social and Food Assistances
• Utilization of electronic money
• Exchange of e-voucher with food assistance
Benefitdisbursement
to bank savings accounts
Registration of beneficiariesand
activation ofdevices through
bank agents.
or
• Beneficiarydata preparation
• Bank agent setup
Notificationtothe household
beneficiariesanddissemination
of program information
• Datacompletionaccording to Know-Your-Customer (KYC) principle
• Activation of Card,SIMCard,or NFC
1 2 3 4 5
BANK
Bank agents
SUMMARY REPORT
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(1) Preparation of beneficiary data and of agents/merchants: compiling and
stipulating the list of households to be beneficiaries in the pilot as well as
mapping and recruitment of agents/merchants by the banks or
telecommunicationcompanies(telcos);
(2) Socialisation and education, including sending invitation letters to
beneficiaries: informing beneficiaries about their participation in the pilot and
proceduresforusingnoncashtransactiondevices,benefits,andotheraspectsof
the pilot.
(3) Registration and activation of beneficiary’s savings account: opening
asavingsaccountinthenameofamemberofeachhouseholdbeneficiaryand
the delivery of transaction devices.
(4) Disbursements of benefits to the bank savings accounts: the process of
transferringthebenefitamounttoeachbeneficiary’ssavingsaccount.
(5) Utilization of benefits: exchanging electronic vouchers with rice and other food
itemsaswellascashwithdrawalsatbank/telcoagents.
10. Other aspects reviewed in the implementation of this pilot include the following:
a. Coordinationandidentificationofcommitmentswiththelocalgovernments;
b. Adequacyofthenumberandsuitabilityofthetypesofmerchants/stalls/shops
orbank/telcoagents;
c. Recruitmentofmerchants/stalls/shopsasagentsofthebanking/telcopartners;
d. Sufficiencyofstockandvarietyoffooditemsavailableatthemerchants/agents/
stalls/shops;
e. Preferenceoftypesandamountoffooditemspurchasedbythecommunity;
f. Coverageandeaseofreportingsystemsprovidedbythebanks/telcos;and
g. Field challenges or complaints reported by the recipient local governments as
well as available solutions.
11. The pilot tests all the debit card-based and cellular phones-based modes of
transactions. Choosing the transaction device technologies and banking/telco
partners that will participate in the pilot requires consultations on the readiness of
eachbank/telcothathas(orwillhave)adevelopedtechnologyandonthenumberof
existingagentsofeachprospectivebank/telco.Ultimately,therewerefivebanking/
telco partners in the pilot (see Table 1).
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Table 1: Pilot Implementing Partners and Noncash Transaction Devices
No Pilot Implementing Partners Noncash Transaction Devices
1. PT. Bank Rakyat Indonesia (Persero), Tbk. DebitCard
2. PT.BankMandiri(Persero),Tbk. SIMCard
3. PT. Bank Negara Indonesia (Persero), Tbk. DebitCard
4.PT.BankPembangunanDaerahJawaTengah
(BPDJateng)QR Code + Website
5. BTPN in cooperation with PT. Telkomsel SIMCard+NFC
12. The pilot on noncash benefit disbursement was carried out for two program types:
a. Food assistance benefits, using electronic vouchers for in-kind social assistance
programs such as Raskin to the value of IDR 110,000/month for two months,
which can only be used for purchasing three types of goods, namely rice, eggs,
ormilk,andcannotbecashedin.ThebenefitamountisanestimateofRaskin
subsidy value per household per month.
b. Cashassistancebenefits,usingelectronicmoneyforsocialassistanceprograms
such as PKH or PIP of IDR 110,000/month for two months, which can be
withdrawn in cash, spent, or saved.
Program benefit types will be channelled through a single beneficiary account and
the transaction mode will be a debit card or cellular phone.
13. Conditions for using the electronic voucher for food assistance during the pilot
are as follows:
a. It can only be used for purchasing certain types of food that have been
determinedforthepilotimplementation,suchasrice,eggs,andmilk;
b. Exchange of the electronic voucher and the purchase of food can only take
place at merchants/agents/stalls/shops with a specific signage and in
cooperationwiththepilotimplementingbanks/telcos;
c. The benefit value of the electronic voucher can only be used for purchasing
theprescribedfooditemsandcannotbewithdrawnincash;
SUMMARY REPORT
8
d. The amount and combination of the purchased food items are up to the
beneficiary;
e. If the price of the purchased food items exceeds the value of the electronic
voucher,thebeneficiarymaypayadditionallywithcash;
f. The electronic voucher value may be partially saved (not spent in entirety).
If the price of the purchased food items is less than the value of the electronic
voucher,theremainingamountcanbesaved;and
g. The electronic voucher value will not be lost (that is, forfeited) and can be
accrued for future use.
14. Terms of using the cash assistance/subsidy benefit during the pilot are as follows:
a. Thebenefitvaluecanbewithdrawnorsaved;
b. Uses of the benefit value are not regulated. It can be used freely (no item
restrictions)toreducetheburdenoffamilyexpenses;
c. Cash withdrawal is permitted at bank/telco agents (including merchants/
shops/stalls),bankoffices,oratAutomatedTellerMachines(ATM);and
d. Can be saved in the bank account and can be accrued for future use.
15. Locations of the limited pilot were based on consultations with the pilot
implementing banking/telco partners with the following criteria:
a. Representing the western region of Indonesia, Java, and the eastern region of
Indonesia as advised by relevant ministries/agencies during discussions on
pilotpreparation;
b. Prioritizingurbanandsemi-urbanareas;
c. Thenumberofbeneficiariesineachkelurahan/villageshouldbelessthan300
households;
d. Availabilityofmerchants/agents/stalls/shopscooperatingwitheachbanking/
telcopartners;
e. Someareasrepresentingthedevelopmentofe-WarongKUBE;and
f. Inlinewiththecapacity/capabilityofthebanking/telcopartners.
16. The final number of pilot locations includes 20 kelurahan/village, 11 subdistricts,
six municipalities and two districts (semi-urban areas), namelyMedanMunicipality,
East Jakarta Municipality, Central Jakarta Municipality, Bogor District (semi-urban
area),SurakartaMunicipality,MalangMunicipality,SidoarjoDistrict(semi-urbanarea),
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andMakassarMunicipality.
17. Criteria/parameters for determining the merchants/agents/stalls/shops in the
pilot activity are as follows:
a. Theratioofmerchants/agents/stalls/shopstobeneficiariesinthepilotactivity
is1:100,anumberconsideredadequatetoservebeneficiarieswithoutcausing
longqueuesofbeneficiarieswhenmakingtransactions;
b. Merchants/agents/stalls/shops are located within the piloting kelurahan/
villagearea;and
c. More than one merchant/agent/stall/shop are available in each piloting
kelurahan/villageareatoavoidpricesettingabovefairprices,andmerchants/
agents/stalls/shops shall provide at least one of the three types of
commodities (rice, eggs, and milk) prescribed in the pilot.
PILOT PREPARATION
18. Implementation of this pilot involved several stakeholders and was facilitated
by the TNP2K Secretariat. Stakeholdersconsistedofrelevantministries/agencies,
local governments, and potential banking partners. Relevant ministries/agencies
were involved in discussions regarding preparation and implementation of the pilot
monitoring. Meanwhile, the local governments were involved as implementing
partners in the pilot locations in checking beneficiary data, facilitating between
beneficiaries and banking/telco partners, socialisation and education, registration,
benefit disbursements, and monitoring. Meetings and consultations with potential
banks and telecommunication companies as pilot partners were conducted in April-
May2016,aroundthreetofourmonthsbeforethebenefitsweredisbursed.
19. The TNP2K Secretariat formed a Pilot Team to support the preparation and
implementation of the pilot. The Pilot Team consisted of a Team Leader, the Local
Implementation Team, the Communication/Socialisation Team, the Monitoring and
EvaluationTeam,aDataAnalyst,aReportingandDocumentationOfficer,aComplaint
ManagementExpert,anExpertforGovernment-to-Person(G2P)andMobileMoney.
20. Coordination and consultation with prospective implementing partners was
SUMMARY REPORT
10
done by the Pilot Team at a very early stage. This included discussions and
finalizationofvariousaspectstoensurethereadinessofpilot implementation,such
as:readinessofanoncashfinancialservicesystemandinfrastructureatthebanking/
telcopartners;readinessandavailabilityoffunds,especiallyfundsforbeneficiaries;
readiness and availability of merchants/agents/stalls/shops in the field; plans and
materialsforsocialisationandeducationforbeneficiaries;andcertaintyofthebenefit
disbursement schedules.
21. Scoping into selected potential areas was conducted by the Pilot Team under
TNP2K Secretariat with the banking/telco partners during 15-20 June 2016
(Phase One) and 2-5 July 2016 (Phase Two, for additional areas) to obtain
baseline information on area conditions, support of the local governments, and
the availability of merchants/agents/stalls/shops that sell food items and
potential to become bank/telco agents. Scoping results from the pilot areas
indicated that all local governments in the selected regions were ready to support the
pilot and facilitate the preparation and socialisation at the subdistrict and kelurahan/
village levels. Local governments, particularly kelurahan/village,werealsowillingto
deliver notification letters to the beneficiaries as long as therewas an official order
from the central government. Local governments also gave suggestions regarding
socialisation materials and media.
22. Initial mapping results in April 2016 showed that most existing banks —both
public and private banks— had not developed noncash disbursement designs in
line with the president’s directives. The only bank that had developed a noncash
disbursement system was BTPN in collaboration with PT. Telkomsel, which applied
the NFC technology as a platform/technology for benefit disbursements. It was,
therefore, decided to hold meetings and consultations with banks as prospective
pilot partners.
23. The DPM for this pilot was prepared by the TNP2K Secretariat. If the required
informationwasinsufficientforopeningabankaccount,thelocalgovernmentswere
alsowillingtocompletetheDPMwiththeIDnumber(Nomor Induk Kependudukan/
NIK) data as a Know-Your-Customer (KYC) requirement for opening bank accounts.
ForbeneficiarieswhodonothaveNIKs,kelurahan/villageswerewillingtocompletea
statement letter of domicile and to follow up with the NIK procurement.
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24. Regional scoping results indicated that prior to implementing the pilot, available
merchants/agents/stalls/shops of banking/telco partners were not evenly
distributed —necessitating the recruitment of new agents by the banking/
telco partners. Merchants/agents/stalls/shops also had not fully met the criteria/
parameters specified in the pilot, namely: (i) the business types of the merchants/
agents/stalls/shopsvaried,notspecificallysellingfooditems(especiallyrice,eggs,
and milk); and (ii) most merchants/agents/stalls/shops did not meet the capacity
of cash liquidity as required. Banking/telco partners implemented a mechanism
for maintaining the cash liquidity of the agents through having their sales staff/
coordinators make visits to all agents. The TNP2K Secretariat coordinated with
banking/telco partners in identifying prospective merchants/agents/stalls/shops
that were relatively well-dispersed, especially those at which people usually shop for
their basic needs.
25. Coordination with relevant ministries/agencies and regulators started in April
2016, about five months before implementation of benefit disbursements.
Therelevantministries/agencies included: (i) theCentralRaskinCoordinationTeam
(Tim Koordinasi/Tikor Raskin Pusat),particularlytheCoordinatingMinistryofHuman
and Cultural Development (Kementerian Koordinator Bidang Pembangunan Manusia
dan Kebudayaan/KemenkoPMK)astheTrusteeandExecutiveChair;theMinistryof
SocialAffairs(Kementerian Sosial/Kemensos)astheproxybudgetuserfortheRaskin
Program; and the National Development Planning Agency (Badan Perencanaan
Pembangunan Nasional/Bappenas) for planning and monitoring; (ii) the Presidential
Staff Office (Kantor Staf Presiden/KSP) to oversee the president’s directives; and
(iii) the Financial Services Authority (Otoritas Jasa Keuangan/OJK)andBankIndonesia
(BI)asthebankingandinclusivefinancialregulators.Thekeyagendainthiscoordination
activity is to convey and get directional inputs for the pilot plan, including on work
principles,work partners, pilot areas, amounts of benefits, disbursement frequency
and period, as well as types of products to be piloted.
26. Coordination with the local governments —which is key to pilot implementation—
was done continuously through meetings, discussions, and sharing progress
status with local government contacts, namely the District/Municipal Raskin
Coordinating Team (Tikor Raskin Kabupaten/Kota and the Regional Poverty
Reduction Coordination Team (Tim Koordinasi Penanggulangan Kemiskinan
SUMMARY REPORT
12
Daerah/TKPKD). Inputs and feedbacks were requested from the local governments
on the following matters:
a. MechanismforupdatingtheRaskinDPMthatservedasthebasisforstipulating
thepilotbeneficiaries;
b. Use of components existing in the community, such as coordination
meetings at the kelurahan/village level, meetings at mosques, as information
disseminationchannels;
c. Importance of introducing the activity as early as possible to the local
governments in order to be able to allocate funds for the pilot activity in the
Regional Revenue and Expenditure Budget (Anggaran Pendapatan dan Belanja
Daerah/APBD);and
d. Identification of the possibilities of public complaints emerging from the pilot.
Thelocalgovernmentswerealsoexpectedtoprovideorfacilitatethefindingof
solutionstoproblemsinthefield.
PILOT IMPLEMENTATION
I. Preparation of the Beneficiary Data and the Merchants/Bank Agents
27. Pilot beneficiaries are households whose names and addresses are listed in the
2016 Raskin DPM as updated and agreed upon by the piloting kelurahan/villages.
TheRaskinDPMwaschosenasthereferenceforstipulatingthepilotbeneficiaries
basedonthefollowingreasons:(i)theDPMallowedforimmediateuseinthepilotas
therewas no need to choose new targets; (ii) this could minimize the potential for
confusionandsocialconflictinthecommunity;and(iii)theDPMcouldhelpthePilot
Team obtain information on the perceptions of the beneficiaries and their
preferences between the noncash and regular Raskin mechanisms. The stipulation
of Raskin household beneficiaries as the pilot beneficiaries did not invalidate their
right to receive the regular Raskin rice allocations that they could still redeem
during monthly Raskin distributions for September 2016 and October 2016.
28. The number of beneficiaries for each pilot kelurahan/village is shown in Table 1.
Data in the DPM comprise: (i) name of the head of the household; (ii) name of
the spouse of the head of the household; (iii) names of household members; and
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(iv) the domicile address.The DPMwas then handed directly by the PilotTeam to
the kelurahan/village-level Raskin officers for verification. The DPM required
recheckinggiventhechangesinDPMdueto:(i)migrationanddeceasedhousehold
beneficiaries; and (ii) the mechanism used in the Raskin Program for replacing the
targetedhouseholds,namelythroughthevillage/kelurahan meeting (musyawarah
desa/kelurahan or musdes/muskel). The updated list of beneficiaries is then
processed by the TNP2K Secretariat Team to smooth the progress of the pilot
implementation.The listwas then returned to the kelurahan/village to be agreed
upon as the list of pilot beneficiaries marked by the signing of a statement of
handover.
29. The agreed list is stored on a compact disc (CD) and forwarded by the TNP2K
Secretariat Team to each bank/telco as the piloting partners for the preparation
of a recipient database at the bank/telco. TheentirepreparationprocessforDPM
untilitisreadyforusetakesaroundonetotwomonths.Informationonbeneficiaries
of this integrated database is the basis for opening a beneficiary savings account
that is uploaded into the system and application of the banking/telco partner.
The preliminary upload is done to save time for registration and activation of
the savings account.
SUMMARY REPORT
14
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of
Be
ne
ficia
rie
s
Sch
ed
ule
of
Sco
pin
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and
So
cial
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to
th
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l G
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t
Sch
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ule
of
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cial
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B
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efic
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Pro
vin
ceM
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icip
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bd
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ict
Kel
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n/
Vill
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lko
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No
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mat
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an
Are
a
Ko
taM
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mII
162
15-1
7 Ju
ne
20
1625
Ju
ly a
nd
19 A
ug
ust
20
16K
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Mat
sum
IV22
5
DK
IJak
arta
Eas
t Jak
arta
C
iraca
sK
ela
pa
Du
aW
eta
n27
622
-23
Jun
e 2
016
22-2
3 Ju
ne
20
16R
amb
uta
n34
5
We
st J
ava
Bo
go
rD
istr
ict
Gu
nu
ng
P
utr
i
Kar
ang
gan
117
21-2
3 Ju
ne
20
1621
-23
Jun
e 2
016
Tla
jun
g U
dik
129
Ce
ntra
l Jav
aS
ura
kart
aP
asar
K
liwo
n
Gaj
ahan
150
15-1
7 Ju
ne
20
1615
-17
Jun
e 2
016
Kam
pu
ng
Bar
u11
7
Ban
k M
and
iri
No
rth
Su
mat
raM
ed
anM
ed
an
Ko
ta
Su
di R
ejo
I27
315
-17
Jun
e 2
016
19 A
ug
ust
20
16S
iti R
ejo
I25
6
DK
IJak
arta
Eas
t Jak
arta
Du
ren
S
awit
Mal
aka
Jaya
189
22-2
3 Ju
ne
20
1620
Se
pte
mb
er
2016
Mal
aka
Sar
i19
1
BP
DC
ent
ral
Java
Ce
ntra
l Jav
aS
ura
kart
aS
ere
ng
anK
rato
nan
201
2-4
Au
gu
st 2
016
23 A
ug
ust
20
16K
em
laya
n12
1
BN
IE
ast J
ava
Mal
ang
Low
okw
aru
Tun
jun
g S
eka
r42
13-
4 A
ug
ust
20
1622
Au
gu
st 2
016
Sid
oar
joD
istr
ict
Tam
anW
on
oco
lo19
61-
2 A
ug
ust
20
16
BR
I
DK
IJak
arta
Ce
ntra
l Jak
arta
Me
nte
ng
Cik
ini
129
12 J
uly
20
1629
Ju
ly 2
016
Ke
bo
n S
irih
390
So
uth
Su
law
esi
Mak
assa
rTa
mal
anre
aTa
mal
anre
a In
dah
249
21-2
3 Ju
ne
20
1629
Ju
ly 2
016
Tam
alan
rea
158
Tab
le 2
: Lo
cati
on
, Ban
kin
g/
Telc
o P
artn
er,
Nu
mb
er
of
Be
ne
ficia
rie
s, S
oci
alis
atio
n S
che
du
le
15
30. During beneficiary data verification, the average replacement of household
beneficiaries in the pilot area was around 7.4 percent. In connection to updating
data,thefollowingpointsinfluencethedataupdatingprocess,namely:
a. DataformatandthetimeofDPMsubmissionfromthekelurahan/villagevaried;
b. The local governments were not very responsive in updating DPM in their
regionsduetothelackoftechnicalcapabilitiesandlimitationinworkingdevices;
c. Additional efforts were needed in collecting data on name of the biological
motherofthebeneficiaryasrequiredforopeningasavingsaccount;and
d. TheexistingDPMhadnotbeenupdatedduetoanyaddresschangeordeathof
beneficiary.
PREPARATION OF MERCHANTS/AGENTS/STALLS/SHOPS
31. One of the pilot preparation activities was recruitment of merchants/agents/
stalls/shops as bank/telco agents because the number of merchants/agents/
stalls/shops have not met the required agent-to-beneficiary ratio. Banking/telco
partnershadtheirownmethods/strategiesinrecruitingmerchants/agents/stalls/
shopsforthepilot.Oneinitiativethathelpedthebanking/telcopartnersinrecruiting
merchants/agents/stalls/shops was through involving the kelurahan/village
officials, community units (Rukun Warga/RW) and neighbourhood units (Rukun
Tetangga/RT)inidentifyingpotentialfoodstalls/shopstoparticipateinthepilot.This
initiative is quite effective considering that the locals have more knowledge about
the level of inventory in shops/stalls in their area, shops/stalls that are known or
trusted by the community, and dispersion of their locations.
32. Following the recruitment by the banking/telco partners, 62 merchants/
agents/stalls/shops were involved in the pilot in the eight pilot areas. Of this
number, the majority had sold food items before the pilot, while only five were
new to selling food items. During the pilot implementation, all agents sold food
items. During the pilot, the banking/telco partners recruited new merchants/
agents/stalls/shops in line with rules applicable to each banking/telco partner
and the process was relatively easy and fast. Requirements of the banking/telco
partners include how long the business has been established, minimum cash
liquidity.Onebankrequiredaminimumdepositof IDRthreemillionthatcouldnot
Ban
kin
g/
Telc
o
Par
tne
r
Loca
tio
nE
stim
ate
d
Nu
mb
er
of
Be
ne
ficia
rie
s
Sch
ed
ule
of
Sco
pin
g
and
So
cial
isat
ion
to
th
e L
oca
l G
ove
rnm
en
t
Sch
ed
ule
of
So
cial
isat
ion
to
B
en
efic
iari
es
Pro
vin
ceM
un
icip
alit
y/D
istr
ict
Su
bd
istr
ict
Kel
ura
ha
n/
Vill
age
BT
PN
Te
lko
mse
l
No
rth
Su
mat
raM
ed
anM
ed
an
Are
a
Ko
taM
atsu
mII
162
15-1
7 Ju
ne
20
1625
Ju
ly a
nd
19 A
ug
ust
20
16K
ota
Mat
sum
IV22
5
DK
IJak
arta
Eas
t Jak
arta
C
iraca
sK
ela
pa
Du
aW
eta
n27
622
-23
Jun
e 2
016
22-2
3 Ju
ne
20
16R
amb
uta
n34
5
We
st J
ava
Bo
go
rD
istr
ict
Gu
nu
ng
P
utr
i
Kar
ang
gan
117
21-2
3 Ju
ne
20
1621
-23
Jun
e 2
016
Tla
jun
g U
dik
129
Ce
ntra
l Jav
aS
ura
kart
aP
asar
K
liwo
n
Gaj
ahan
150
15-1
7 Ju
ne
20
1615
-17
Jun
e 2
016
Kam
pu
ng
Bar
u11
7
Ban
k M
and
iri
No
rth
Su
mat
raM
ed
anM
ed
an
Ko
ta
Su
di R
ejo
I27
315
-17
Jun
e 2
016
19 A
ug
ust
20
16S
iti R
ejo
I25
6
DK
IJak
arta
Eas
t Jak
arta
Du
ren
S
awit
Mal
aka
Jaya
189
22-2
3 Ju
ne
20
1620
Se
pte
mb
er
2016
Mal
aka
Sar
i19
1
BP
DC
ent
ral
Java
Ce
ntra
l Jav
aS
ura
kart
aS
ere
ng
anK
rato
nan
201
2-4
Au
gu
st 2
016
23 A
ug
ust
20
16K
em
laya
n12
1
BN
IE
ast J
ava
Mal
ang
Low
okw
aru
Tun
jun
g S
eka
r42
13-
4 A
ug
ust
20
1622
Au
gu
st 2
016
Sid
oar
joD
istr
ict
Tam
anW
on
oco
lo19
61-
2 A
ug
ust
20
16
BR
I
DK
IJak
arta
Ce
ntra
l Jak
arta
Me
nte
ng
Cik
ini
129
12 J
uly
20
1629
Ju
ly 2
016
Ke
bo
n S
irih
390
So
uth
Su
law
esi
Mak
assa
rTa
mal
anre
aTa
mal
anre
a In
dah
249
21-2
3 Ju
ne
20
1629
Ju
ly 2
016
Tam
alan
rea
158
SUMMARY REPORT
16
be liquidated if they remained serving as bank agents.
33. Challenges that emerged in this process included merchants/agents/stalls/
shops having difficulties in fulfilling bank/telco requirements and readiness of
the merchants/agents/stalls/shops to conduct noncash transactions. In spite
of the challenges, a number of food merchants/agents/stalls/shops were willing
to participate in the pilot from the beginning for the following reasons: (1) desire to
help the community; (2) potential additional customers; (3) potential additional
profits from assistance benefit uses; and (4) interest in becoming an agent that
would provide other services. The capability of the food agents/stalls varied,
depending on their cash liquidity and ability to provide food items —rice, eggs, and
milk.
34. Until the registration phase, there were still areas where the ratio of
agents to beneficiaries had not met the 1:100 ratio of the pilot design. Difficulty
of getting merchants/agents/stalls/shops in pilot kelurahan/village was due to
the unwillingness of some food shopkeepers or stall owners in the area to work with
the banking/telco partner. The food shopkeepers or stall owners that had been
invited to participate were worried about their inability to operate the transaction
equipment, provide cash funds, and their ability to serve a queue of beneficiaries.
Kelurahan/village officials and neighbourhood heads played a very helpful role in
addingagentsuntilreachingtheidealnumberofbank/telcoagentsalthoughsome
of them were located just outside the kelurahan/villagearea.
35. Three factors to be considered in ensuring effectiveness of the noncash food/
social assistance program in terms of the ability of merchants/agents/stalls/
shops are: (a)availabilityoffooditems;(b)variationsintypesandqualityofthefood
items;and(c)reasonablepricesofthefooditems(marketprices).
36. Ensuring adequacy of agents will require: (a) a self-registration mechanism for all
retail trade business actors to propose themselves as merchants/agents/stalls/
shops that serve noncash transactions; (b) a mechanism for the involvement and
active role of stakeholders at the kelurahan/village level in identifying potential
merchants/agents/stalls/potential shops; (c) ideal distance between households
andthetransactionlocationstodeterminethemerchant/agent/stall/shopserving
SUMMARY REPORT
17
noncash transactions; (d) merchants/agents/stalls/shops are within the same
kelurahan/village; (e) enhancing information networks and cooperation between
merchants/agents/stalls/shops with food suppliers/distributors; and (f) support
the cash liquidity of the merchants/agents/stalls/shops in giving services for
thewithdrawalofcashbenefits.
II. Socialisation, Delivery of Invitations To Beneficiaries, and Education
37. The socialisation and education activity for the stakeholders —particularly
beneficiaries and merchants/agents/stalls/shops— is very important to garner
support and ensure that those involved in the activity have good information and
understanding. In this pilot, mass communication channels, such as television
and radio, were not chosen as socialisation and education channels due to their
limited coverage.
38. Three main messages to be conveyed during socialisation were: information
about the program overall; disbursement mechanism during the pilot; and
the registration and transaction locations. The media chosen to be used and targets
of the three messages were: (1) a letter explaining brief information and
participation in the pilot —addressed to beneficiaries; (2) audio visuals containing
five-toseven-minutetutorialabouttheactivityoverall,includingthedisbursement
mechanismofeverybanking/telcopartnerinthepilot—addressedtoTikorRaskin,
localgovernmentsandagents/merchants;(3)aguidebook that contains complete
informationregardingtheprogramanddisbursementmechanismofeachbanking/
telco partner in the pilot —addressed to Tikor Raskin, local governments and
agents/merchants; (4) an information sheet containing explanations on
the mechanism of each banking/telco partner in the pilot —addressed to
beneficiaries; and (5) a list of merchants/agents/stalls/shops containing
informationonthenamesandlocationsofpartnermerchants/agents/stalls/shops
inthepilot—addressedtobeneficiaries.
SUMMARY REPORT
18
39. Besides socialisation material and facilities, the most important aspect of
the socialisation and education design was the socialisation media/channel
that would be used in the pilot. Among the considerations for using certain
channels in this pilot are that they can be applied in the initial implementation of
food assistance in 44 municipalities in 2017 and the possibility they can be
implemented at national scale after 2017.
40. Considering the main message to be delivered, three communication channels
were used in the pilot activity, namely: (1) the government, through a tiered
method, disseminated information regarding the overall program from the central
government to the local government, at the municipal/district level, subdistrict
level, and eventually the kelurahan/villageandRW/RTlevels;(2)thebanking/telco
partners in the pilot, as counterparts who understand the disbursement
mechanisms through the merchants/agents/stalls/shops, provided information
on the disbursement mechanism; and (3) the RW/RT, as they are the most
accessible for beneficiaries, received basic information about the pilot activity and
benefitdisbursements.
19
SUMMARY REPORT
41. Socialisation and education to beneficiaries started with the delivery of
a notification letter. The notification letter basically informs the letter’s recipient
that their household has been selected to participate in the pilot activity and receive
noncashdisbursementsofsocialassistancebenefitsduringthepilotperiod.
42. Another important socialisation stage was the method for delivering
the notification to the beneficiaries. Two delivery methods were used by
the banking/telco partners during the pilot, namely by sending directly through
third parties to the address of the household and by sending the notification
through the kelurahan/village officials. Both ways involve coordination with
kelurahan/village officials. The readiness and willingness of RT/RW heads and
kelurahan/villageofficialstoactivelybecomeresourcepersonsforthebeneficiaries
regarding key information of the pilot was an important component in
the implementation. In this pilot, socialisation and education sessions for resource
persons at the kelurahan/village level were conducted through meetings with
theRT/RWheadsandkelurahan/villageofficials.
43. Education to increase the capacity and ability of merchants/agents/stalls/shops,
particularly new agents, to provide noncash transaction services was provided by
banking/telco partners. Two training methods were applied in the pilot activity,
namely: (1) class method; and/or (2) training at the business location of every
merchant/agent/stall/shop. The training and education of merchants/agents/
stalls/shops during the pilot was well conducted and transaction mechanisms
were well understood by training participants. There were some exceptions with
some personnel who had little experience in using technology.
44. Other important takeaways and lessons from the socialisation and education
aspect is that beneficiaries require persons or a source to obtain information and
further confirmation to address misunderstandings about the purpose, objective,
and scope of activities. In this pilot, RT/RW heads, cadres, agents functioned as
providersofinformationtobeneficiaries.Thecomprehensivenessanduniformityof
understanding from the implementers and those involved in the socialisation of
activities is very important to avoid confusion in the implementation of activities at
themerchant/agent/stall/shopandbeneficiarylevels.Informationwhenconveyed
directly was easier for the communities to understand compared to using written
20
media (such as letters). Another lesson from this pilot was that the availability of
socialisation facilities/instruments prior to field implementation needed to be
ensured to smoothen the socialisation process.
III. Registration, Account Opening, and Activation
45. In the pilot activity, there are three scenarios for the account holder name:
(i) the spouse of the head of the household (usually a female); (ii) the head of
the household (usually a male); or (iii) the individual within the household who
attends the registration event. Inprinciple,thesavingsaccountopening/activation
process for any beneficiary complies with the applicable banking rules and
procedures. The common procedure was that the prospective bank customer
would register by bringing a valid identification document, such as an ID Card
(Kartu Tanda Penduduk/KTP),andfilloutaregistrationform,includingtheKYCdata
and signature specimen.
46. According to the pilot design, the savings account of every beneficiary comprises
two subaccounts (wallets), each for the benefit of a program, namely:
(i) the subaccount for food assistance benefit in the form of electronic vouchers
used only for purchasing food items; and (ii) subaccount for cash benefits. Both
arelinkedtotheaccountofthebeneficiary.ForBankMandiri’ssystem,exceptionally,
thebeneficiaryaccountonlyreceivedfoodassistancebenefitsfromtheelectronic
voucher. In this pilot, the savings account and the wallets were activated at the same
timeoftheregistrationandaccountopeningprocessforthebeneficiary.
47. In general, there were two ways to open an account: (1) savings account opening
in the bulk or collective account opening (pembukaan rekening secara kolektif/
burekol) system; and (2) opening through online registration. The availability of
beneficiary data allowed the banking partners to expedite the account opening
processforbeneficiariesduringtheregistration.
48. In the collective account opening, prospective beneficiary data was made
available beforehand, including their full names and ID numbers (NIK). The banks
openedaccountsbasedonsuchbeneficiarydataandthenheldregistrationevents
21
to complete other necessary data, such as the date of birth, mother’s maiden name,
andsignatureaccordingtotheIDcard(KTP)ofthebeneficiary.
49. In the online bank registration, the beneficiary data was uploaded by the banking
partner into its system. The registration process was done at the agent of the banking
partnerwhenthebeneficiarypresentedhis/hernotificationletterthathadaunique
number to the bank agent. The bank agent then inputted the unique number from
the letter. As the data was uploaded online, some of the fields in the online
registrationwouldalreadybefilled.Onlyseveralfieldswould,therefore,remainblank
andneedtobefilled(mother’smaidenname,theplaceanddateofbirth)orwould
require corrections, such as an incorrect address. After the registration process was
complete, back-end approval from the bank needed to be obtained for opening
the account.
50. The bulk account opening process through the collective account opening
(burekol) system for beneficiaries was done by BNI and BRI. The banks set one
beneficiary name as the account owner (referring to paragraph 45) without
theattendanceofthebeneficiary.Thebeneficiary’sdatawaspreparedaccordingto
the2016RaskinDPMthathadbeenupdatedbythelocalgovernment.Theaccount
opening process was done in line with BI regulations. The banks still required
the beneficiary to be present at the registration/activation event and bring
supporting documents. Besides BRI and BNI, Bank Jateng also performed collective
account opening. The difference is that, in the account activation process, Bank
Jatengdidnotrequirethebeneficiarytobepresent.
51. Account opening through an online registration procedure was used by BTPN-
Telkomsel, whereas registration of the beneficiary was done at any BTPN-
Telkomsel agent. The procedure was carried out as explained in paragraph 50.
52. Bank Mandiri combined two account opening procedures. The bank set three
members of every household beneficiary as prospective account holders.
At the time of registration, one of the household members present became
the definitive account holder after producing the required matching identity
documents.
22
53. The challenges in opening a collective account during the pilot included:
(1) ID number-related issues; (2) every beneficiary already having a savings
account or Customer Information File (CIF) at the banking partner; and
(3) the doubts of BNI and BRI in handing over printed savings books to
beneficiaries. The challenges relating with the ID number included when: (1)
abeneficiary’sIDnumber(NIK)datawasregisteredforadifferentpersonthatcould
be caused by duplicate ID numbers and synchronization issues between the
electronic ID card (e-KTP) system and the population administrative information
system (Sistem Informasi Administrasi Kependudukan/SIAK);or(2)abeneficiaryhad
neverhadanIDnumber(NIK).
54. There are several reasons why banking partners might have been reluctant
to hand over savings books and transaction devices to beneficiaries. First,
inconsistenciesinabeneficiary’s identityinformationasrecordedinthelistofpilot
beneficiarieswith the information in the beneficiary’s identity documents, such as:
name,IDnumber,andaddressdidnotmatch.Inthissituation,thebankingpartner
would ask for advice and approval of the Central Pilot Team. Second, household
members designated to be account holders (head of the household or the spouse)
had died or migrated. Based on applicable regulations, the bank must ask for
adeathcertificateorapowerofattorneyoftheaccountholder.Inaddition,incases
of death, the bank must close the account. Third, household members under
17yearsoldwhowereheirsbutdidnotyetholdanIDcard(KTP).Thebankwould
require an approval letter from a legal guardian. Fourth,thespouseshadseparated/
divorced. According to bank rules, the account shall remain in the name of
the account holder (either the husband or the wife) and this can lead to potential
conflictwithinthehouseholdandincompatibilitywithprogramcriteriaandpurposes.
Such cases need to be handled immediately to ensure the success of program
implementation in 2017.
55. Challenges faced by banking/telco partners in online registration included,
among others: (1) failure in the registration process for not having an ID Card or
havinglostit;(2)disruptionstotheserverreceivingtheregistrationprocess;(3)cellular
data service disruption during registration; (4) supporting documents were not
readableinthesystem(forexample:unclearKTPphoto);(5)signaturedidnotmatch
the one on the ID card during registration; and (6) inability or unpreparedness of
23
SUMMARY REPORT
agentsdirectlyaffectedthelengthofregistrationtime.
56. Three methods/locations for distributing and activating transaction devices
used in the pilot were as follow: (1) provision of a special temporary counter by
the banking partner at the kelurahan/village level for a duration agreed by
the banking partner with the kelurahan/village.The process required coordination
with kelurahan/village officials to determine the location, duration, and
announcement to the beneficiaries; (ii) meetings with community members was
usedforopeningaccountsanddistributingSIMcardsthatservedasthetransaction
device;and(3)throughtheagentsofthebanking/telcopartnerduringtheaccount
opening process. Registration is done online by providing, installing, and activating
theNFCstickeronthecellularphoneofthebeneficiary.Atthesametime,theNFC
device is fixed to the cellular phone of the beneficiary and activated for use in
transactions.
57. An advantage of the first distribution method is branch offices of the banking
partners were not burdened by a surge of visitors. Furthermore, it did not attract
crowds in the kelurahan/village that might otherwise have caused community
memberswhowerenotprogrambeneficiariesbecomeenviousofthosewhowere.
Thisfirstmethodalsohaschallenges,however,asaprospectivebeneficiarycould
havebeenremovedfromthelistofbeneficiariesiftheyhadnotbeenabletocome
tothetemporarycounterduringitsoperatingperiod(fivedaysonaverage).
58. The advantage of the second method is that the time allocation was more
efficient, particularly for bank officers. In the second method, however,
the greatest challenge is to identify the location and time for the meeting. Besides
that,notallbeneficiarieswereabletobepresentatthescheduledtimeforvarious
reasons,particularlyinregionswithlargenumbersofbeneficiaries.
59. The main advantage of the third method is that it allowed multi-location
registration and activation at the village/kelurahan level that let beneficiaries
to choose a registration location. This method was accommodating and made
itconvenientforbeneficiariestoaccesstheclosestregistrationlocation,therefore,
minimizingthepotentialforbeneficiariesnotshowingupforregistration.Inthisthird
method, however, the challenge is the readiness and resource capacity of the bank
24
and agents to do online registration in multiple locations.
60. For vulnerable groups such as the elderly and/or people with disabilities who
were unable to come for the registration/activation due to physical barriers,
it required proactive efforts of the banking/telco partners and the local
governments for ensuring the vulnerable group could still be registered and have
their account activated. Based on a survey of 451 beneficiaries, 32 percent were
elderly (above 60 years of age).
61. Each of the two transaction modes/devices —cellular phone-based and debit
card-based— have advantages and disadvantages. Advantages of the cellular
phone-based mode include: (1) it is cost effective for the bank and the merchant;
(2) besides the cellular phone itself, there is no need for additional equipment;
(3)therearelong-termadvantages,suchaswidespreadtechnologicalpenetration;
and (4) easy notification. Advantages of the debit card-based mode include:
(1)theabilitytotarget100percentofbeneficiaries;(2)manymerchantsareusedtoit;
and(3)theabilitytowithdrawcashfromanATM.
62. The main disadvantage of the debit card-based mode is the high cost for
printing cards and procuring electronic data capture (EDC) devices. Other
disadvantages include the necessity to have additional equipment (EDC devices)
25
SUMMARY REPORT
whereas notification of disbursement is difficult to broadcast.The disadvantage of
thecellularphone-basedmodeisthatonlyfewbeneficiarieshavecellularphones
anditsinconveniencesforelderlybeneficiaries.
63. Based on requirements that beneficiaries must meet during the activation
process of the transaction/technological devices, requirements for debit cards
and QR Code are considered the simplest. Beneficiaries only needed to bring
alongthesupportingdocuments,namelythenotificationletterforpilotbeneficiary
and identity documents (KTP and KK).
64. SIM card and NFC-based transaction devices required an active cellular phone
and SIM card as well as the notification letter for the pilot beneficiary and identity
documents for the registration/activation process. There were two main problems
with SIM card or NFC-based account activation, regarding: (i) beneficiaries who
did not have cellular phones at all; and (ii) beneficiaries who used products from
other telecommunication providers. The solution to this problem was to distribute
new SIM cards and/or agents lent a cellular phone to hold the SIM card during
the registration process for beneficiaries who did not own a cellular phone. After
thefirsttransactionwascompleted,theSIMcardandNFCstickerwouldbebrought
bythebeneficiaryforsubsequenttransactionpurposes.
65. On the transaction devices needed by the agents, the banking partners used two
main devices, namely: (1) EDC devices, for banking partners who used the debit
card and SIM card mechanism; and (2) cellular phones, for banking partners who
used SIM card + NFC-based and QR Code + website-based transaction devices.
The EDC deviceswere provided by banking partners (BNI, BRI, and Bank Mandiri)
and lent to the agents. For agents of Bank Jateng, the cellular phone was provided
by the agents, whereas for agents of BTPN-Telkomsel, the cellular phone was lent by
the banking partner to the agents. All cellular phones used were smartphones.
66. BNI used one type of EDC device with 3G technology, while BRI used two types of
EDC device, one for noncash transactions and the other for electronic vouchers
—both of which still used 2G technology. Connection disruptions often happened
withtheEDCdevicesthatstillused2Gtechnology. Inaddition,EDCdevicesneed
regular maintenance (every three weeks according to BNI). As there was only one
26
EDC device per agent/food stall, an agent in Malang was unable to provide
transactionservicesfor1.5daysbecausetheEDCdevicewasundermaintenance.
IV. Disbursement of Benefits Through Bank Accounts
67. In general, direct disbursement to the savings accounts of beneficiaries worked
well, was received in full without any fees cut, and directly disbursed to
the noncash subaccount and electronic voucher subaccount. At receiving
thefundinthesavingsaccountandsubaccount,thebeneficiarycoulddirectlyuse
the funds. Electronic vouchers could be used to purchase the prescribed food
items whereas the electronic money for other needs. There were several residual
issues related to disbursement, including: (i) the electronic money balance and
the electronicvoucher balance did not increase; (ii) the electronic money balance
increased whereas the electronic voucher did not; and (iii) the electronic money
balance did not increase whereas the electronic voucher balance increased.
68. Cellular phone-based mechanisms that use a SIM card had the advantage
and convenience in conveying information on the disbursement schedule to
the beneficiaries. BankingpartnerswereabletosendanSMSdirectlytoacellular
phone,whereas debit cards needed additional effort to inform beneficiaries about
the disbursement of funds. The information delivery method for the debit card in
thepilotwasthroughvillage/kelurahanofficialswhofurtherconveyedtheinformation
tobeneficiaries.Thismethodwaslesseffectivebecausetherewasnoguaranteethat
theinformationwouldbereceivedbythebeneficiaries.
69. In Bank Mandiri’s pilot scheme, the disbursement of benefits was done
the day after the beneficiaries opened their accounts. Before conducting
transactions, beneficiaries received a notification through SMS regarding
thedisbursementofpilotfundfromthebanktothebeneficiaryaccount.Immediately
after, Bank Mandiri sent a Personal Identification Number (PIN) number that could
beusedbythebeneficiaryinthetransactionprocess.Abeneficiarycouldnotmake
any transaction until the second SMS was received. On the day of disbursement,
the beneficiary could begin to use the pilot benefit to purchase food items at
amerchant/agent/stall/shopalreadyworkingwiththebankingpartner.
27
SUMMARY REPORT
70. Banks (BNI and BRI) disbursed benefits to the accounts of the beneficiaries.
Athavingtransferredthefundstotheaccounts,thebeneficiarieswerenotdirectly
informed. Therefore, these banks worked together with kelurahan/villageofficialsto
disseminate the information about when noncash benefits were accessible.
Beneficiarieswouldgotoamerchant/agent/stall/shoptomakeuseofthebenefits
withtheirdebitcard.Themerchant/agent/stall/shopwouldthencheckthebalance
byswipingthedebitcardontheEDCdevice.
V. Use of Benefits: Exchanging Electronic Vouchers for Food Assistance and
Electronic Money Withdrawal
71. At receiving the notification on the electronic vouchers and electronic money,
beneficiaries can come to any agent to purchase food items using the electronic
food voucher or withdraw cash from the electronic money. For food assistance,
beneficiaries can select the type and amount of food items desired from
the prescribed food items (rice, eggs, and/or milk). Agents will then calculate
thebeneficiary’sspending.Themanager/ownerofthemerchant/agent/stall/shop
will then write the type of food items purchased on a receipt and hand over
thegoods.Theamountofbeneficiary’sspendingwillthenbeusedasthebasisfor
the electronic transaction process (using the beneficiary’s cellular phone and
agent’s EDC device). Except for practice of the QR Code system; in which
the process was done manually (non-electronically).
72. During Phase I transactions, transactions tended to accumulate on the first and
second days despite socialisation about the flexibility in time to use the benefits
at the agent level. The situation started to change in Phase II as queues were no
longer seen on early days following the disbursement. Transactions generally went
well for all transaction modes used. Nevertheless, transaction issues were still found
inPhaseI,includingbeneficiariesnotunderstandingtheprocess,systemissues,and
others. Transaction processes gradually improved in Phase II.
73. Bank Jateng’s scheme and disbursement process using the QR Code technology
and transactions with the beneficiaries tended to be very simple. The transaction
schedule was informed through an invitation letter sent by the bank with
28
the support of kelurahan officials. Beneficiaries brought the invitation/notification
letter to the designated agent/food stall as indicated in the invitation letter.
BeneficiarieswerealsorequiredtobringtheirKTPandKKasproofoftheiridentity.
The letters with the QR Code also served as a transaction device. The disadvantage of
this was that transactions could occur offline and duplicate transactions of one
beneficiaryatdifferentagentswerepossible.
74. In the SIM card-based system (Bank Mandiri), shortcomings were still observed in
Phase I transactions. Beneficiaries only received one notification through SMS
(while it should have been two SMS, namely a notification on the disbursement
and an SMS with the PIN) so that the benefits could not be used. Improvements
weremadeforPhaseIItransactions.Anotherchallengewasthebeneficiaries’lackof
comprehension, particularly during Phase I, so transactions were mostly assisted by
bankfieldofficersorfacilitators.Suchfacilitatorsplayedadominantroleinguiding
theagentsandbeneficiariesinmakingthetransactions.Inaddition,somestepson
completingtheone-timepassword(OTP)procedureontheEDCdeviceweretime
limited to no more than 15 minutes. In some cases, transactions had to be repeated
from the start because beneficiaries and agents ran out of time to input
the information.
75. Beneficiaries also did not understand that there were fees for using bank/telco
services, including phone credits when reporting complaints to the consumer
call centre. All information sent in the procedurewas subject to a fee of IDR 550
(particularly for requesting PIN and OTP). This cost was charged to the remaining
balanceintheSIMcard.ProblemsoccurwhenPINandOTPrequestsmustbemade
repeatedlyduetoerrorsinfillingtheinformationorrunningoutoftime.Toaddress
this problem, banks/telcos have preloaded the SIM cards with a balance of
IDR5,000duringPhaseIdisbursement.DuringPhaseIIdisbursement,banks/telcos
requestedthebeneficiariestorefilltheirownSIMcardstofacilitatethetransaction
process.When a card is blocked because the beneficiary forgot their PIN or input
awrongPIN,theymustplaceacalltothebank/telcocallcentre.Somebeneficiaries
exhausted their phone credits when contacting the call centre before they managed
to get a new PIN.
76. In using the NFC transaction device, both the cash withdrawal as well as
29
SUMMARY REPORT
food assistance purchases using electronic vouchers generally proceeded well.
Beneficiariestendedtowithdrawalltheelectronicmoneyinonetransactionanduse
the entire electronic voucher balance following Phase I disbursement. Following
the Phase II disbursement, it required less time (5-10 minutes) compared to during
Phase I (above 10 minutes) to withdraw the electronic money as well as use
the electronic vouchers. The process was faster in Phase II because both agents and
beneficiaries had become more familiar with the transaction scheme. Although
queues were relatively long on the first day of Phase I, merchants/agents/stalls/
shopswerestillabletoservethebeneficiaries.InPhaseI,someagentsstillsought
the assistance of bank/telco facilitators, but in Phase II agents had become more
independentinprovidingcashaswellasfoodvoucherstobeneficiaries.
77. Challenges for SIM card and NFC systems in the pilot period included: (a) unstable
network conditions during the transaction; (b) PIN was not kept confidential by
beneficiaries; and (c) beneficiaries had difficulties accessing the benefits on their
ownusingtheircellularphones.Beneficiarieswhohandovertheentireprocessof
cash withdrawals and food purchases using the electronic vouchers to
the merchants/agents/stalls/shops also posed a risk of abuse by the latter.
Asaresult,thereneedstobesupervisionforeverymerchant/agent/stall/shop.
78. The challenge with the QR Code system implemented by Bank Jateng is that
noproofofthetransactionwasgiventothebeneficiaries.Recordingoftransactions
wasonlyavailablewiththeapplicationofthemerchant/agent/stall/shop.Merchants/
agents/stall/shops were able to record transactions manually/offline because
the invitation letter that served as a transaction device could be retained by
the merchant/agent/stall/shop. In practice, most merchants/agents/stalls/
shops that use this system packaged the food items (rice, egg, milk) during
the Phase I disbursement. Another error in using this system during the pilot was
that PINs were written on invitation letters that were sent openly without an envelope
—allowing any person to read it and, therefore, undermining the account security.
79. In the debit card systems (BNI and BRI), beneficiaries used the electronic money
by stating the amount of cash they intend to withdraw from the merchant/agent/
stall/shop. The merchant/agent/stall/shop would then swipe the card on their
EDCdevice,andthebeneficiarywouldinputthePIN(previouslyinformedinthePIN
30
letter). If the transaction is approved, the merchant/agent/stall/shop gives
themoneytothebeneficiaryintheamountofthebenefit.Thefooditemspurchase
procedureusingelectronicvoucherswassimilartocashwithdrawal.Thedifference
was that the merchant/agent/stall/shop would select a special menu/code,
namelythefoodelectronicvoucherwhenswipingthedebitcardontheEDCdevice.
Themerchant/agent/stall/shopwouldgivethepaymentreceipttothebeneficiary
forthepurchasedfooditemsaswellascashwithdrawalfromtheEDCdevicewhen
the transactions were successful.
80. Challenges with debit card-based transactions include, among others:
(a) information on fund transfer from the bank to the beneficiaries was not
automatically received by beneficiaries; (b) the variety of EDC devices used at
the merchant/agent/stall/shop; (c) balance transfer failures; and (d) issues
regarding e-wallets. Another challenge related to the merchants/agents/stalls/
shops if lacking the skills to operate the EDC device. The debit card system
developed by the banking partners could not lock in the types of foods purchased
by beneficiaries. This also contributed to compliance [issues] in purchasing food
items.
81. Almost all merchant/agent/stall/shop partners of BNI and BRI allowed
the purchase of other goods besides the prescribed food items. Besides issues
with the system that cannot limit the types of food items purchased, non-compliance
in limiting the types of food items that can be purchased with the electronic food
vouchers was mostly due to the lack of socialisation, so this limitation was considered
merely a suggestion. That said, all merchants/agents/stalls/shops complied with
the requirement to not sell cigarettes in transactions that use electronic vouchers.
MONITORING AND EVALUATION RESULTS
82. Monitoring and evaluation of the entire business process of the piloted
disbursement was conducted by the TNP2K Secretariat. The purpose of this
monitoring and evaluation was to: (1) learn about the process and performance
of the pilot implementation of noncash disbursements of social assistance and food
assistanceinpilotareas; (2) identifyandevaluatethesupportingfactors inpiloting
31
SUMMARY REPORT
thenoncashdisbursementsofsocialassistanceandfoodassistance;(3)identifyand
evaluate challenges that emerged during the pilot activity and strategies to
address them; and (4) provide a range of recommendations that can be used to
design improvements to a noncash disbursement mechanism for food assistance
at an extended scale.
83. Given the time and resource limitations, the monitoring of the pilot
implementation used a spot check approach. The advantage of a spot check
approach is that it can be done quickly and efficiently,while still being capable of
producing inputs for program improvements. Spot checks were done with qualitative
and quantitative methods. The qualitative method was conducted through in-depth
interviews with key informants, including beneficiaries, merchants/agents/stalls/
shops, banks/telcos, and local government/officials, direct observation, and
secondary data collection.
84. Spot checks were done in five out of eight pilot areas. The number of household/
beneficiary respondents to be interviewed was 451 households who were randomly
selected in the in the five pilot areas and out of the total of 2,937 beneficiaries.
The number of respondents at merchant/agent/stall/shop levelwas 37 out of 42
in the five pilot areas. In total, 622 respondents and informants were interviewed
through either surveys or in-depth interviews. The primary data collection process
was conducted in September-October 2016.
85. A number of field findings from the monitoring and evaluation have been
presented in this documentation. Other field findings from the monitoring and
evaluation of the pilot implementation include:
i. Based on the experience of beneficiaries using bank services, the majority
(64percent)ofbeneficiarieshadnothadsavingsinthebank,while36percent
had savings in the bank.
ii. Themajorityofrespondentsreportedthattheywereverysatisfied(59percent)
or satisfied (34 percent) with the noncash disbursement mechanism for food
assistance.
iii. Beneficiaries who were satisfied reported that the piloted Noncash Food
32
Assistance Program had some advantages compared to Raskin Program,
namely that the process was easier, access to benefit exchange/purchase
locations was easier, and there was more variety in the types of food items
received.
iv. Thosewhoweredissatisfied(eightpercent)reportedthatthe(piloted)Noncash
Food Assistance Program had a complicated registration process, the amount of
rice received was less compared to the amount in the Raskin Program, and they
werenotconfidentusingthebankaccounts/technologytoaccessthebenefits.
v. Some94percentofthe365beneficiaryrespondentsexchangedtheelectronic
vouchers at the same place for the Phase 1 and Phase 2 disbursements. Only
a very few (six percent) of beneficiaries exchanged electronic vouchers at
adifferentplace.
vi. Regarding the use of electronic vouchers to make food purchases,
62 beneficiaries (15 percent) experienced problems such as, among others:
(1) the waiting time to complete a transaction (35 percent of beneficiaries
experienced this in Phase 1 and 21 percent experienced it in Phase 2);
(2) the requirement to have a cellular phone (24 percent of beneficiaries
experiencedthisinPhase1andPhase2transactions);(3)badnetworkcoverage
(10 percent of beneficiaries experienced this in Phase 1 and 16 percent of
beneficiaries in Phase 2 transactions); and (4) unable to access the benefits
because they had no remaining balance in their accounts (six percent of
beneficiariesexperiencedthisinPhase1and13percentinPhase2transactions).
vii. The survey results of 451 beneficiaries showed that 20 percent of
the beneficiaries reported experiencing problems during registration;
34 percent reported technical problems such as lack of a cellular signal and
transactiondevicesnotworking;14percentrelatedto incompletedocuments;
and13percentofbeneficiarieswereunabletocompletetheregistrationprocess.
viii. From the 37 merchants/agents/stalls/shops who became agents of
thebanking/telcopartnersandparticipatedinthepilot,73percenthadbeenin
businessformorethanfiveyears,11percentbetweenthreetofiveyears,eight
33
SUMMARY REPORT
percent for two years, and the remainder (eight percent) had been in business
foroneyear.Merchants/agents/stalls/shopsthathadbeeninbusinesslonger
tend to do better in managing their food stock and have a strong network with
suppliers compared with those who were new to the business.
ix. The length of time that merchants/agents/stalls/shops were open and
thenumberofworkersprovidingtheservicesaffectedthebeneficiaries’access
tononcashfoodassistancebenefits.Outof37merchants/agents/stalls/shops
who became bank/telco agents and participated in the pilot, the average
operating time was 15 hours, the lowest was 11 hours, and the longest was
20.5 hours.
x. Intermsofthenumberofworkersprovidingtheservices(includingstall/shop
owners), around 43 percent of merchants/agents/stalls/shops had two
workers, 24 percent had three workers, and 22 percent had four workers.
xi. Around 87 percent of merchants/agents/stalls/shops involved in the pilot
activity stated their willingness to be involved in large-scale implementation.
Around four percent did not yet decide, whereas nine percent gave other
reasons such as the program was not yet clear to them, they experienced
difficulties when using Android applications, and were concerned that their
routine business would be disrupted.
xii. Sources of information most frequently accessed by merchants/agents/
stalls/shopswerethebankingpartnersandlocalofficials,suchasRT/RWheads
and cadres (such as from the integrated health services station or pos pelayanan
terpadu/Posyandu). Around 35.14 percent of agents received information
regarding pilot activities from the banks, 21.62 percent from banks and cadres,
and16.22percentfromRT/RW.
xiii. Merchants/agents/stalls/shops reported a number of problems they
experienced during the process of registering as an agent during the pilot.
Around 11 percent experienced difficulties, such as completing documents
(eight percent) and not being a bank customer (three percent). In the regular
agent recruitment process, each bank applied a minimum balance requirement
34
for agents, for example, Bank Mandiri IDR 100,000; BTPN IDR 250,000; BNI
IDR500,000;andBRIIDR3million.
xiv. Other problems faced by merchants/agents/stalls/shops include technical
issues such as reliability of cellular coverage and transaction devices. Some
beneficiariesmightalsoforgettobringtherequireddocumentsandforgettheir
PINs, thereby causing transaction delays.
xv. Bankingpartnersreliedontheinvitation/notificationlettertothebeneficiariesas
a communication channel for socialisation and registration during the pilot.
Thesurveyshowedthat72percentofbeneficiariesreceivedinformationabout
the Noncash Food Assistance Program in the pilot through the invitation letter,
47percentthroughtheRT/RWheads,17percentthroughthekelurahan/village
office, 14 percent through other beneficiaries/neighbours, and 19 percent
received information from other sources.
xvi. The compliance level on the type of food items purchased by beneficiaries
depended on a number of factors. These included: (1) socialisation to partner
merchants/agents/stalls/shopsandbeneficiaries;(2)knowledgeofmerchants/
agents/stalls/shops and beneficiaries about the types of food items that can
bepurchased;(3)willingnessandincentivesofmerchants/agents/stalls/shops
to convey information to beneficiaries regarding food items that can be
purchased; and (4) commitment and willingness of banking/telco partners to
monitorandimposesanctionsonmerchants/agents/stalls/shops.
xvii. Pilot beneficiaries understood that they could spend only as much as they
needanddidnothavetospendthetotalbenefitamountatonce.Thenumber
and composition of food items purchased tended tovary. Some beneficiaries
bought only one type of food item (rice), others would purchase three (rice, eggs,
and milk) at the same time. Some beneficiaries even added their own money
becausetheirpurchaseexceededIDR110,000.
xviii.At first, merchants/agents/stalls/shops that are BTPN-Telkomsel partners
were lax and did not limit the electronic voucher exchange to only three
types of prescribed food items. Because there were inconsistencies in
35
the implementation at Phase I, banking/telco partners and the local
government conducted a subsequent socialisation of merchants/agents/
stalls/shopstobestricterinservingelectronicvoucherexchanges.
xix. Basedonobservationsinthefield,itwasdifficulttoexpectmerchants/agents/
stalls/shops to ensure that electronic vouchers were only used for three
prescribed types of food items. Basically, there was no incentive for
the merchants/agents/stalls/shops to impose such limits because their
interest is to sell the goods in their shops to gain profit. In addition, therewas
a difference in the information and directions provided by teams in the field
about what could be sold so some merchants/agents/stalls/shops and
beneficiariestendedtodisregardthatrequirementdespitewarnings.
86. Summary of Pilot Outcomes. A summary of the pilot activities and outcomes of
the evaluation are presented in Table 3.
36
No
nca
sh
Dis
bu
rse
me
nt
Sta
ge
De
bit
Car
dS
IM C
ard
De
bit
Car
dQ
R C
od
e +
We
bsi
teS
IM C
ard
+ N
FC
BR
IB
ank
Man
dir
iB
NI
Ban
k Ja
ten
gB
TP
N+
Telk
om
sel
Pre
par
atio
n o
f A
ge
nts
ST
RE
NG
TH
S:
In a
ge
nt
recr
uitm
ent
, b
ank
bra
nch
es
coo
rdin
ate
with
lo
calo
ffici
als
or
use
exi
stin
g
BR
ILin
k ag
ent
s.
Trai
nin
g o
f ag
ent
s u
ses
two
me
tho
ds:
cl
ass
(co
llect
ive)
an
d s
ho
p
(ind
ivid
ual
).
Maj
orit
yo
fag
ent
sar
efo
od
sta
lls/
sho
ps.
ST
RE
NG
TH
S:
In a
ge
nt
recr
uitm
ent
, b
ank
bra
nch
es
coo
rdin
ate
with
lo
calo
ffici
als.
Trai
nin
g o
f ag
ent
s u
ses
sho
p m
eth
od
(in
div
idu
al).
Maj
orit
yo
fag
ent
sar
efo
od
sta
lls/
sho
ps.
ST
RE
NG
TH
S:
In a
ge
nt r
ecr
uitm
ent
, b
ank
bra
nch
es
coo
rdin
ate
with
loca
l o
ffici
als.
Trai
nin
g o
f ag
ent
s u
ses
sho
p m
eth
od
(in
div
idu
al) t
hat
is
inte
nsi
ve (r
ep
eat
ed
b
ank
tech
nic
al te
am
faci
litat
ion
).
Maj
orit
yo
fag
ent
sar
efo
od
sta
lls/
sho
ps.
ST
RE
NG
TH
S:
In a
ge
nt r
ecr
uitm
en
t, b
ank
bra
nch
es
coo
rdin
ate
with
loca
l o
ffici
als.
Trai
nin
g o
f ag
en
ts
use
s tw
o m
eth
od
s:
clas
s (c
olle
ctiv
e) a
nd
sh
op
(in
div
idu
al).
Maj
orit
yo
fag
en
tsa
re
foo
ds
talls
/sh
op
s.
ST
RE
NG
TH
S:
Invo
lve
s th
ird p
artie
s in
ag
ent
re
cru
itme
nt
to e
nsu
re t
hat
ag
ent
s re
cru
ited
me
et
the
ne
ed
in t
he
pilo
t ar
ea.
In a
ge
nt r
ecr
uitm
ent
, th
ird p
artie
s co
ord
inat
ew
ithlo
calo
ffici
als.
Ag
en
ts e
ng
age
d g
en
era
lly h
ave
be
en
L
aku
Pan
dai
ag
ent
s.
Trai
nin
g o
f ag
en
ts u
ses
tw
o m
eth
od
s: c
lass
(co
llect
ive)
an
d s
ho
p
me
tho
d (i
nd
ivid
ual
).
Ban
ks p
rovi
de
cas
h s
up
po
rt fo
r ag
en
ts
to fa
cilit
ate
no
nca
sh d
isb
urs
em
ent
se
rvic
es.
LIM
ITA
TIO
N:
Ban
k h
ead
qu
arte
rs
hav
e n
o u
nifo
rm
recr
uitm
ent
p
roce
du
re
be
twe
en
re
gio
ns.
LIM
ITA
TIO
N:
Trai
nin
g o
f ag
ent
s u
sin
g in
div
idu
al
me
tho
d o
nly
ris
ks in
form
atio
n
dis
tort
ion
.
LIM
ITA
TIO
N:
Trai
nin
g o
f ag
ent
s u
sin
g o
nly
th
e
ind
ivid
ual
me
tho
d
risks
info
rmat
ion
d
isto
rtio
n.
Maj
orit
yo
fag
ent
sar
e n
ew.
LIM
ITA
TIO
N:
Du
ring
tra
inin
g,
som
e a
ge
nts
still
had
diffi
cult
yo
pe
ratin
g t
ran
sact
ion
ap
plic
atio
ns
on
th
e
smar
tph
on
e.
LIM
ITA
TIO
N:
Du
ring
tra
inin
g,s
om
ea
ge
nts
still
ex
pe
rien
ced
diffi
cult
ies
ino
pe
ratin
g
cellu
lar
ph
on
e-b
ase
d t
ran
sact
ion
d
evic
es,
par
ticu
larl
y fo
r th
e r
eg
istr
atio
n
pro
cess
.
So
me
ag
ent
sar
en
ot
foo
ds
talls
/sh
op
s.
Tab
le 3
: Str
en
gth
s an
d L
imit
atio
ns
of
Pilo
t Tr
ansa
ctio
n M
od
es
No
ncash
D
isbu
rsem
en
t S
tage
De
bit C
ardS
IM C
ardD
eb
it Card
QR
Co
de
+ We
bsite
SIM
Card
+ NFC
BR
IB
ank M
and
iriB
NI
Ban
k Jaten
gB
TP
N+ Te
lkom
sel
So
me
age
nts still h
add
ifficu
lties
op
eratin
g tw
o
ED
Cd
evicesfo
re
lectro
nic vo
uch
ers.
Trainin
g m
ostly
give
n to
sho
p
own
ers, w
hile
tho
se
op
eratin
g tran
saction
d
evices are
mo
stly e
mp
loyee
s.
Majo
rityofag
entsare
n
ew.
So
cialisation
an
d E
du
cation
ST
RE
NG
TH
S:
Usin
g th
e P
oin
ts o
f Info
rmatio
n
(local acto
rs): costs
arelow
;the
reis
active p
articipatio
n
ofo
fficialsat
keluraha
n/villag
e
level;an
din
teractio
n
be
twe
en
the
In
form
ation
Ce
ntre
and
be
ne
ficiaries
can b
e d
on
e
anytime
, anywh
ere
.
ST
RE
NG
TH
S:
Usin
g th
e P
oints o
f In
form
ation
: costs
arelow
;the
reis
active p
articipatio
n
ofo
fficialsat
keluraha
n/villag
e
level;an
dinte
raction
b
etw
ee
n th
e
Info
rmatio
n C
entre
an
db
en
eficiarie
scan
be
do
ne
anytime
, anyw
he
re.
ST
RE
NG
TH
S:
Usin
g th
e P
oints
of Info
rmatio
n
Ce
ntre: co
sts are
low;th
ere
is active
p
articipatio
n
ofo
fficialsat
keluraha
n/villag
eleve
l;an
d inte
raction
b
etw
ee
n th
e
Inform
ation
C
entre
and
b
en
eficiarie
scan
be
do
ne
anytime
, anyw
he
re.
ST
RE
NG
TH
S:
Usin
g th
e P
oints o
f Info
rmatio
n: co
sts are
low;th
ere
isactive
particip
ation
of
offi
cialsatkeluraha
n/villag
eleve
l;and
inte
raction
be
twe
en
th
e Info
rmatio
n C
entre
an
db
en
eficiarie
scan
be
do
ne
anytime
, anyw
he
re.
ST
RE
NG
TH
S:
Usin
g th
e P
oints o
f Inform
ation
: costs
arelow
;the
reisactive
particip
ation
o
foffi
cialsatkeluraha
n/villag
e
level;an
dinte
raction
be
twe
en
the
Info
rmatio
nC
entre
and
be
ne
ficiaries
can b
e d
on
e anytim
e, anyw
he
re.
Th
rou
gh
third
partie
s/age
nts,info
rmatio
n can
be
un
iform
and
the
re
isdire
ctinteractio
nb
etw
ee
nfie
ld
offi
cersan
db
en
eficiarie
satho
me
.
37
No
nca
sh
Dis
bu
rse
me
nt
Sta
ge
De
bit
Car
dS
IM C
ard
De
bit
Car
dQ
R C
od
e +
We
bsi
teS
IM C
ard
+ N
FC
BR
IB
ank
Man
dir
iB
NI
Ban
k Ja
ten
gB
TP
N+
Telk
om
sel
Pre
par
atio
n o
f A
ge
nts
ST
RE
NG
TH
S:
In a
ge
nt
recr
uitm
ent
, b
ank
bra
nch
es
coo
rdin
ate
with
lo
calo
ffici
als
or
use
exi
stin
g
BR
ILin
k ag
ent
s.
Trai
nin
g o
f ag
ent
s u
ses
two
me
tho
ds:
cl
ass
(co
llect
ive)
an
d s
ho
p
(ind
ivid
ual
).
Maj
orit
yo
fag
ent
sar
efo
od
sta
lls/
sho
ps.
ST
RE
NG
TH
S:
In a
ge
nt
recr
uitm
ent
, b
ank
bra
nch
es
coo
rdin
ate
with
lo
calo
ffici
als.
Trai
nin
g o
f ag
ent
s u
ses
sho
p m
eth
od
(in
div
idu
al).
Maj
orit
yo
fag
ent
sar
efo
od
sta
lls/
sho
ps.
ST
RE
NG
TH
S:
In a
ge
nt r
ecr
uitm
ent
, b
ank
bra
nch
es
coo
rdin
ate
with
loca
l o
ffici
als.
Trai
nin
g o
f ag
ent
s u
ses
sho
p m
eth
od
(in
div
idu
al) t
hat
is
inte
nsi
ve (r
ep
eat
ed
b
ank
tech
nic
al te
am
faci
litat
ion
).
Maj
orit
yo
fag
ent
sar
efo
od
sta
lls/
sho
ps.
ST
RE
NG
TH
S:
In a
ge
nt r
ecr
uitm
en
t, b
ank
bra
nch
es
coo
rdin
ate
with
loca
l o
ffici
als.
Trai
nin
g o
f ag
en
ts
use
s tw
o m
eth
od
s:
clas
s (c
olle
ctiv
e) a
nd
sh
op
(in
div
idu
al).
Maj
orit
yo
fag
en
tsa
re
foo
ds
talls
/sh
op
s.
ST
RE
NG
TH
S:
Invo
lve
s th
ird p
artie
s in
ag
ent
re
cru
itme
nt
to e
nsu
re t
hat
ag
ent
s re
cru
ited
me
et
the
ne
ed
in t
he
pilo
t ar
ea.
In a
ge
nt r
ecr
uitm
ent
, th
ird p
artie
s co
ord
inat
ew
ithlo
calo
ffici
als.
Ag
en
ts e
ng
age
d g
en
era
lly h
ave
be
en
L
aku
Pan
dai
ag
ent
s.
Trai
nin
g o
f ag
en
ts u
ses
tw
o m
eth
od
s: c
lass
(co
llect
ive)
an
d s
ho
p
me
tho
d (i
nd
ivid
ual
).
Ban
ks p
rovi
de
cas
h s
up
po
rt fo
r ag
en
ts
to fa
cilit
ate
no
nca
sh d
isb
urs
em
ent
se
rvic
es.
LIM
ITA
TIO
N:
Ban
k h
ead
qu
arte
rs
hav
e n
o u
nifo
rm
recr
uitm
ent
p
roce
du
re
be
twe
en
re
gio
ns.
LIM
ITA
TIO
N:
Trai
nin
g o
f ag
ent
s u
sin
g in
div
idu
al
me
tho
d o
nly
ris
ks in
form
atio
n
dis
tort
ion
.
LIM
ITA
TIO
N:
Trai
nin
g o
f ag
ent
s u
sin
g o
nly
th
e
ind
ivid
ual
me
tho
d
risks
info
rmat
ion
d
isto
rtio
n.
Maj
orit
yo
fag
ent
sar
e n
ew.
LIM
ITA
TIO
N:
Du
ring
tra
inin
g,
som
e a
ge
nts
still
had
diffi
cult
yo
pe
ratin
g t
ran
sact
ion
ap
plic
atio
ns
on
th
e
smar
tph
on
e.
LIM
ITA
TIO
N:
Du
ring
tra
inin
g,s
om
ea
ge
nts
still
ex
pe
rien
ced
diffi
cult
ies
ino
pe
ratin
g
cellu
lar
ph
on
e-b
ase
d t
ran
sact
ion
d
evic
es,
par
ticu
larl
y fo
r th
e r
eg
istr
atio
n
pro
cess
.
So
me
ag
ent
sar
en
ot
foo
ds
talls
/sh
op
s. No
ncash
D
isbu
rsem
en
t S
tage
De
bit C
ardS
IM C
ardD
eb
it Card
QR
Co
de
+ We
bsite
SIM
Card
+ NFC
BR
IB
ank M
and
iriB
NI
Ban
k Jaten
gB
TP
N+ Te
lkom
sel
So
me
age
nts still h
add
ifficu
lties
op
eratin
g tw
o
ED
Cd
evicesfo
re
lectro
nic vo
uch
ers.
Trainin
g m
ostly
give
n to
sho
p
own
ers, w
hile
tho
se
op
eratin
g tran
saction
d
evices are
mo
stly e
mp
loyee
s.
Majo
rityofag
entsare
n
ew.
So
cialisation
an
d E
du
cation
ST
RE
NG
TH
S:
Usin
g th
e P
oin
ts o
f Info
rmatio
n
(local acto
rs): costs
arelow
;the
reis
active p
articipatio
n
ofo
fficialsat
keluraha
n/villag
e
level;an
din
teractio
n
be
twe
en
the
In
form
ation
Ce
ntre
and
be
ne
ficiaries
can b
e d
on
e
anytime
, anywh
ere
.
ST
RE
NG
TH
S:
Usin
g th
e P
oints o
f In
form
ation
: costs
arelow
;the
reis
active p
articipatio
n
ofo
fficialsat
keluraha
n/villag
e
level;an
dinte
raction
b
etw
ee
n th
e
Info
rmatio
n C
entre
an
db
en
eficiarie
scan
be
do
ne
anytime
, anyw
he
re.
ST
RE
NG
TH
S:
Usin
g th
e P
oints
of Info
rmatio
n
Ce
ntre: co
sts are
low;th
ere
is active
p
articipatio
n
ofo
fficialsat
keluraha
n/villag
eleve
l;an
d inte
raction
b
etw
ee
n th
e
Inform
ation
C
entre
and
b
en
eficiarie
scan
be
do
ne
anytime
, anyw
he
re.
ST
RE
NG
TH
S:
Usin
g th
e P
oints o
f Info
rmatio
n: co
sts are
low;th
ere
isactive
particip
ation
of
offi
cialsatkeluraha
n/villag
eleve
l;and
inte
raction
be
twe
en
th
e Info
rmatio
n C
entre
an
db
en
eficiarie
scan
be
do
ne
anytime
, anyw
he
re.
ST
RE
NG
TH
S:
Usin
g th
e P
oints o
f Inform
ation
: costs
arelow
;the
reisactive
particip
ation
o
foffi
cialsatkeluraha
n/villag
e
level;an
dinte
raction
be
twe
en
the
Info
rmatio
nC
entre
and
be
ne
ficiaries
can b
e d
on
e anytim
e, anyw
he
re.
Th
rou
gh
third
partie
s/age
nts,info
rmatio
n can
be
un
iform
and
the
re
isdire
ctinteractio
nb
etw
ee
nfie
ld
offi
cersan
db
en
eficiarie
satho
me
.
SUMMARY REPORT
38
No
nca
sh
Dis
bu
rse
me
nt
Sta
ge
De
bit
Car
dS
IM C
ard
De
bit
Car
dQ
R C
od
e +
We
bsi
teS
IM C
ard
+ N
FC
BR
IB
ank
Man
dir
iB
NI
Ban
k Ja
ten
gB
TP
N+
Telk
om
sel
Th
rou
gh
th
e
com
mu
nity
me
etin
g
me
tho
d, i
nfo
rmat
ion
is
un
iform
;th
ere
isd
irect
in
tera
ctio
n b
etw
ee
n
TN
P2K
Se
cre
taria
t an
d b
ank
team
s an
d
be
ne
ficia
ries;
an
dit
o
ccu
rs s
imu
ltan
eo
usl
y th
us
able
to r
eac
h
larg
e n
um
be
rs o
f b
en
efic
iarie
s.
So
cial
isat
ion
an
d E
du
cati
on
LIM
ITA
TIO
NS
:In
form
atio
n c
an v
ary
be
twe
en
Po
ints
of
Info
rmat
ion
.
LIM
ITA
TIO
NS
:In
form
atio
n c
an v
ary
be
twe
en
Po
ints
of
Info
rmat
ion
.D
isad
vant
age
of
com
mu
nity
me
etin
g
me
tho
d: r
eq
uire
s h
igh
co
st;a
de
qu
ate
fa
cilit
ysu
pp
ort
;an
d
be
ne
ficia
ries
wh
oa
re
abse
nt f
rom
me
etin
gs
do
no
t g
et
info
rmat
ion
.
LIM
ITA
TIO
NS
:In
form
atio
n c
an
vary
be
twe
en
P
oin
ts o
f In
form
atio
n.
LIM
ITA
TIO
NS
:In
form
atio
n c
an v
ary
be
twe
en
Po
ints
of
Info
rmat
ion
.
LIM
ITA
TIO
NS
:In
form
atio
n c
an v
ary
be
twe
en
P
oin
ts o
f In
form
atio
n.
Dis
adva
nta
ge
oft
hird
par
ty/
age
nt
me
tho
d: h
igh
co
st b
eca
use
p
artn
ers
mu
sth
irefi
eld
pe
rso
nn
el.
39
No
ncash
D
isbu
rsem
en
t S
tage
De
bit C
ardS
IM C
ardD
eb
it Card
QR
Co
de
+ We
bsite
SIM
Card
+ NFC
BR
IB
ank M
and
iriB
NI
Ban
k Jaten
gB
TP
N+ Te
lkom
sel
Re
gistratio
n an
d
Activatio
nS
TR
EN
GT
HS
:B
en
eficiarie
swh
o
have
accou
nts
op
en
ed
visit kelura
han/
village
o
ffice
store
giste
r,th
us d
o n
ot h
ave to
g
oto
bran
cho
ffice
.
ST
RE
NG
TH
S:
Be
ne
ficiariesw
ho
h
ave acco
unts
op
en
ed
visit kelura
han/
village
o
ffice
store
giste
r,th
us d
o n
ot h
ave to
g
oto
bran
cho
ffice
.
ST
RE
NG
TH
S:
Be
ne
ficiariesw
ho
have
acco
unts o
pe
ne
d visit
keluraha
n/villag
eo
ffice
sto
reg
ister, th
us d
o n
ot h
ave
tog
oto
bran
cho
ffice
.
Do
ne
usin
go
fflin
em
eth
od
,i.e
.op
en
ing
de
finitive
acco
unt fo
r on
e o
f the
b
en
eficiarie
sand
che
cko
f adm
inistrative
data
first,red
ucin
gre
gistratio
n
waitin
g tim
e.
ST
RE
NG
TH
S:
Re
gistratio
n an
d
activation
are d
on
e
colle
ctively w
itho
ut
involvin
gb
en
eficiarie
sso
it can b
e d
on
e
faster.
ST
RE
NG
TH
S:
Op
en
ing
ind
icative acco
unt
(‘accou
nt ho
use’) fo
r all b
en
eficiarie
sino
ne
ho
use
ho
ld
red
ucin
g th
e risk o
f erro
r o
fbe
ne
ficiarydatain
the
acco
unt.
Be
ne
ficiaryvisitsne
arest
me
rchant/ag
ent/stall/sh
op
to
reg
ister w
itho
ut h
aving
to g
o
tob
ranch
offi
ce.
Re
gistratio
n an
d
Activatio
nL
IMITA
TIO
NS
:D
on
eu
sing
offl
ine
m
eth
od
, i.e. o
pe
nin
g
de
finitive
accou
nt
foro
ne
be
ne
ficiary,w
itho
ut ch
eckin
g
adm
inistrative
data,
so w
aiting
time
d
urin
g re
gistratio
n is
lon
g.
LIM
ITAT
ION
S:
Re
gistratio
n
is all do
ne
in
on
e d
ay with
a larg
e n
um
be
r of
be
ne
ficiariesso
w
aiting
time
is lo
ng
.
LIM
ITAT
ION
S:
Th
e P
IN o
nly re
fers to
th
e acco
unt h
old
er n
ame
w
itho
ut u
sing
NIK
or
un
iqu
eID
soso
me
PIN
n
um
be
rs are m
ixed
up
.
LIM
ITAT
ION
S:
Re
gistratio
n strate
gy
that d
oe
s no
t involve
b
en
eficiarie
sispro
ne
to
misu
se o
f assistance
acco
unt.
LIM
ITAT
ION
S:
Re
gistratio
n p
roce
ss takes
time
be
cause
age
nts/b
en
eficiarie
sne
ed
tow
aitfo
r app
roval from
ban
k h
ead
qu
arters.
SUMMARY REPORT
40
No
nca
sh
Dis
bu
rse
me
nt
Sta
ge
De
bit
Car
dS
IM C
ard
De
bit
Car
dQ
R C
od
e +
W
eb
site
SIM
Car
d +
NFC
BR
IB
ank
Man
dir
iB
NI
Ban
k Ja
ten
gB
TP
N+
Telk
om
sel
Acc
ou
nt d
ata
corr
ect
ion
an
d
sup
po
rtin
g
do
cum
ent
re
qu
irem
ent
s ta
kes
time
.
E-f
orm
ap
plic
atio
ns
can
on
ly r
ead
p
ho
tos
and
sig
nat
ure
sp
eci
me
ns
that
m
atch
th
ose
in K
TP,
wh
ere
as s
om
e
be
ne
ficia
ries,
par
ticu
larl
yth
ee
lde
rly,
h
ave
diffi
cult
ies
fulfi
llin
git
.
On
line
re
gis
trat
ion
re
qu
ires
stro
ng
ce
llula
r co
vera
ge
.
Dis
bu
rse
me
nt
ST
RE
NG
TH
S:
Dis
bu
rse
me
nt
fro
m b
ank
to
be
ne
ficia
rys
avin
gs
acco
unt
is in
re
al
time
.
ST
RE
NG
TH
S:
Dis
bu
rse
me
ntf
rom
ban
kto
b
en
efic
iary
sav
ing
sac
cou
nt
is in
re
al t
ime
.
Dis
bu
rse
me
ntn
otifi
catio
n
isd
irect
tob
en
efic
iarie
sth
rou
gh
SM
S.
No
tifica
tion
isfa
st.
ST
RE
NG
TH
S:
Dis
bu
rse
me
nt
fro
m b
ank
to
be
ne
ficia
ry
savi
ng
s ac
cou
nt
is in
re
al t
ime
.
ST
RE
NG
TH
S:
Dis
bu
rse
me
nt
fro
m b
ank
to
be
ne
ficia
ry
savi
ng
s ac
cou
nt
is in
re
al t
ime
.
ST
RE
NG
TH
S:
Dis
bu
rse
me
ntf
rom
ban
kto
b
en
efic
iary
sav
ing
sac
cou
ntis
inr
eal
tim
e.
Dis
bu
rse
me
ntn
otifi
catio
nis
dire
ctto
b
en
efic
iarie
sth
rou
gh
SM
S.
No
tifica
tion
isfa
st.
LIM
ITA
TIO
NS
:D
isb
urs
em
ent
sc
he
du
le
no
tifica
tion
mu
st
invo
lve
loca
l o
ffici
als
and
ag
ent
sb
eca
use
ban
ks d
o
no
t h
ave
dire
ct
LIM
ITA
TIO
NS
:D
isb
urs
em
ent
sch
ed
ule
n
otifi
catio
nt
hro
ug
hS
MS
is
mis
sed
by
be
ne
ficia
ries
wh
o
do
no
t ow
n a
ce
llula
r p
ho
ne
.
LIM
ITA
TIO
NS
:D
isb
urs
em
ent
sc
he
du
le
no
tifica
tion
mu
st
invo
lve
loca
l o
ffici
als
and
ag
ent
s b
eca
use
b
anks
do
no
t h
ave
dire
ct.
LIM
ITA
TIO
NS
:D
isb
urs
em
ent
sc
he
du
le
no
tifica
tion
mu
st
invo
lve
loca
l o
ffici
als
and
ag
en
ts b
eca
use
b
anks
do
no
t h
ave
dire
ct.
LIM
ITA
TIO
NS
:D
isb
urs
em
ent
sch
ed
ule
no
tifica
tion
th
rou
gh
SM
Sis
mis
sed
by
be
ne
ficia
ries
wh
od
on
ot
own
ce
llula
rp
ho
ne
s.
SUMMARY REPORT
41
No
nca
sh
Dis
bu
rse
me
nt
Sta
ge
De
bit
Car
dS
IM C
ard
De
bit
Car
dQ
R C
od
e +
W
eb
site
SIM
Car
d +
NFC
BR
IB
ank
Man
dir
iB
NI
Ban
k Ja
ten
gB
TP
N+
Telk
om
sel
Acc
ou
nt d
ata
corr
ect
ion
an
d
sup
po
rtin
g
do
cum
ent
re
qu
irem
ent
s ta
kes
time
.
E-f
orm
ap
plic
atio
ns
can
on
ly r
ead
p
ho
tos
and
sig
nat
ure
sp
eci
me
ns
that
m
atch
th
ose
in K
TP,
wh
ere
as s
om
e
be
ne
ficia
ries,
par
ticu
larl
yth
ee
lde
rly,
h
ave
diffi
cult
ies
fulfi
llin
git
.
On
line
re
gis
trat
ion
re
qu
ires
stro
ng
ce
llula
r co
vera
ge
.
Dis
bu
rse
me
nt
ST
RE
NG
TH
S:
Dis
bu
rse
me
nt
fro
m b
ank
to
be
ne
ficia
rys
avin
gs
acco
unt
is in
re
al
time
.
ST
RE
NG
TH
S:
Dis
bu
rse
me
ntf
rom
ban
kto
b
en
efic
iary
sav
ing
sac
cou
nt
is in
re
al t
ime
.
Dis
bu
rse
me
ntn
otifi
catio
n
isd
irect
tob
en
efic
iarie
sth
rou
gh
SM
S.
No
tifica
tion
isfa
st.
ST
RE
NG
TH
S:
Dis
bu
rse
me
nt
fro
m b
ank
to
be
ne
ficia
ry
savi
ng
s ac
cou
nt
is in
re
al t
ime
.
ST
RE
NG
TH
S:
Dis
bu
rse
me
nt
fro
m b
ank
to
be
ne
ficia
ry
savi
ng
s ac
cou
nt
is in
re
al t
ime
.
ST
RE
NG
TH
S:
Dis
bu
rse
me
ntf
rom
ban
kto
b
en
efic
iary
sav
ing
sac
cou
ntis
inr
eal
tim
e.
Dis
bu
rse
me
ntn
otifi
catio
nis
dire
ctto
b
en
efic
iarie
sth
rou
gh
SM
S.
No
tifica
tion
isfa
st.
LIM
ITA
TIO
NS
:D
isb
urs
em
ent
sc
he
du
le
no
tifica
tion
mu
st
invo
lve
loca
l o
ffici
als
and
ag
ent
sb
eca
use
ban
ks d
o
no
t h
ave
dire
ct
LIM
ITA
TIO
NS
:D
isb
urs
em
ent
sch
ed
ule
n
otifi
catio
nt
hro
ug
hS
MS
is
mis
sed
by
be
ne
ficia
ries
wh
o
do
no
t ow
n a
ce
llula
r p
ho
ne
.
LIM
ITA
TIO
NS
:D
isb
urs
em
ent
sc
he
du
le
no
tifica
tion
mu
st
invo
lve
loca
l o
ffici
als
and
ag
ent
s b
eca
use
b
anks
do
no
t h
ave
dire
ct.
LIM
ITA
TIO
NS
:D
isb
urs
em
ent
sc
he
du
le
no
tifica
tion
mu
st
invo
lve
loca
l o
ffici
als
and
ag
en
ts b
eca
use
b
anks
do
no
t h
ave
dire
ct.
LIM
ITA
TIO
NS
:D
isb
urs
em
ent
sch
ed
ule
no
tifica
tion
th
rou
gh
SM
Sis
mis
sed
by
be
ne
ficia
ries
wh
od
on
ot
own
ce
llula
rp
ho
ne
s.
No
ncash
D
isbu
rsem
en
t S
tage
De
bit C
ardS
IM C
ardD
eb
it Card
QR
Co
de
+ We
bsite
SIM
Card
+ NFC
BR
IB
ank M
and
iriB
NI
Ban
k Jaten
gB
TP
N+ Te
lkom
sel
no
tification
m
ech
anism
s to
be
ne
ficiaries.
No
tification
takes
time
.
Ne
ed
min
imu
m b
alance
to
en
sure
the
SIM
card
rem
ains active
.
no
tification
m
ech
anism
s to
be
ne
ficiaries.
No
tification
takestim
e.
no
tification
me
chan
ismsto
b
en
eficiarie
s.
No
tification
takestim
e.
Ne
ed
min
imu
m
balan
ce to
en
sure
th
eS
IMcard
rem
ains
active.
Use
of
Transactio
n
Eq
uip
me
nt
and
Assistan
ce
Utilizatio
n
ST
RE
NG
TH
S:
Ab
le to
targe
t 10
0%
of
be
ne
ficiaries.
Mo
rem
erch
ants/
ag
en
ts are u
sed
to
this te
chn
olo
gy in
tran
saction
s.
Co
nn
ecte
dto
AT
M
wh
en
makin
g cash
w
ithd
rawals.
ST
RE
NG
TH
S:
Co
st-effe
ctivefo
rbo
th
ban
ksand
age
nts/
me
rchan
ts.
Bo
thag
ents/
me
rchants
and
ban
ks do
no
t ne
ed
ad
ditio
nal e
qu
ipm
ent.
In th
e lo
ng
term
will b
e
easie
r to u
se b
ecau
se
cellu
lar tech
no
log
y p
en
etratio
n w
ill be
mo
re
wid
esp
read
.
Disb
urse
me
ntn
otificatio
nise
asyusin
g
SM
S.
ST
RE
NG
TH
S:
Ab
le to
targe
t 100
% o
f b
en
eficiarie
s.
Mo
rem
erch
ants/
age
nts are u
sed
to
this te
chn
olo
gy in
tran
saction
s.
Co
nn
ecte
dto
AT
M
wh
en
makin
g cash
w
ithd
rawals.
ST
RE
NG
TH
S:
In th
e lo
ng
term
will b
e e
asier to
u
se b
ecau
se ce
llular te
chn
olo
gy
pe
ne
tration
will b
e m
ore
w
ide
spre
ad.
QR
Co
de
can re
place
the
fu
nctio
n o
f PIN
.
ST
RE
NG
TH
S:
Co
st-effe
ctivefo
rb
oth
ban
ks and
ag
ents/
me
rchants.
Bo
thag
ents/
me
rchants an
d
ban
ks do
no
t ne
ed
ad
ditio
nal e
qu
ipm
ent.
In th
e lo
ng
term
w
ill be
easie
r to
use
be
cause
ce
llular te
chn
olo
gy
pe
ne
tration
will b
e
mo
re w
ide
spre
ad.
Disb
urse
me
ntn
otificatio
nise
asyu
sing
SM
S.
SUMMARY REPORT
42
No
nca
sh
Dis
bu
rse
me
nt
Sta
ge
De
bit
Car
dS
IM C
ard
De
bit
Car
dQ
R C
od
e +
We
bsi
teS
IM C
ard
+ N
FC
BR
IB
ank
Man
dir
iB
NI
Ban
k Ja
ten
gB
TP
N+
Telk
om
sel
Use
of
Tran
sact
ion
E
qu
ipm
en
t an
d A
ssis
tan
ce
Uti
lizat
ion
LIM
ITA
TIO
NS
:M
ore
exp
en
sive
be
cau
se
itre
qu
ires
ED
Cd
evic
efo
rtr
ansa
ctio
n.
Mo
ree
xpe
nsi
veb
eca
use
b
anks
mu
st p
rint
de
bit
card
s in
larg
e n
um
be
rs.
De
bit
card
isa
na
dd
itio
nal
in
stru
me
nt t
hat
mu
st b
e h
eld
b
yb
en
efic
iarie
san
d,i
flo
st,
the
pro
cess
of r
ep
laci
ng
it
mu
st b
e d
on
e in
bra
nch
es
and
is t
ime
-co
nsu
min
g.
Alt
ho
ug
h P
IN e
nsu
res
tran
sact
ion
se
curit
y, s
om
e
be
ne
ficia
ries
still
hav
e
diffi
cult
ym
em
oriz
ing
it.
No
tifica
tion
on
dis
bu
rse
me
nt
is n
ot
eas
y to
do
.
Th
ere
are
stil
l fo
od
p
urc
has
es
ou
tsid
e t
he
p
resc
ribe
d li
st.
LIM
ITA
TIO
NS
:N
ot
all
be
ne
ficia
ries
hav
e c
ellu
lar
ph
on
es.
Th
e e
lde
rly
still
fa
ce p
rob
lem
s in
usi
ng
ce
llula
r p
ho
ne
-bas
ed
tr
ansa
ctio
ns.
Ne
ed
PIN
for
tran
sact
ion
se
curit
y.B
anks
ne
ed
to
pro
vid
eE
DC
d
evic
e fo
r tr
ansa
ctio
ns
ata
ge
nts/
m
erc
han
ts.
Th
ere
are
stil
l fo
od
pu
rch
ase
s o
uts
ide
th
e
pre
scrib
ed
list
.
LIM
ITA
TIO
NS
:M
ore
exp
en
sive
be
cau
se
itre
qu
ires
ED
Cd
evic
efo
rtr
ansa
ctio
n.
Mo
ree
xpe
nsi
veb
eca
use
b
anks
mu
st p
rint
de
bit
card
s in
larg
e n
um
be
rs.
De
bit
card
isa
na
dd
itio
nal
in
stru
me
nt t
hat
mu
st b
e h
eld
b
yb
en
efic
iarie
san
d,i
flo
st,
the
pro
cess
of r
ep
laci
ng
it
mu
st b
e d
on
e in
bra
nch
es
and
is
tim
e-c
on
sum
ing
.
Alt
ho
ug
h P
IN e
nsu
res
tran
sact
ion
se
curit
y, s
om
e
be
ne
ficia
ries
still
hav
e
diffi
cult
ym
em
oriz
ing
it.
No
tifica
tion
on
dis
bu
rse
me
nt
is n
ot
eas
y to
do
.
Th
ere
are
stil
l fo
od
pu
rch
ase
s o
uts
ide
th
e p
resc
ribe
d li
st.
LIM
ITA
TIO
NS
:A
ge
nts
/m
erc
han
ts
and
ban
ks n
ee
d
add
itio
nal
eq
uip
me
nt,
an A
nd
roid
-bas
ed
sm
artp
ho
ne
.
QR
co
de
is e
asily
d
amag
ed
as
it is
p
rinte
d o
n in
vita
tion
le
tte
r.
Be
ne
ficia
ries
do
no
tg
et
a tr
ansa
ctio
n
rece
ipt.
Th
e p
ract
ice
of
pac
kag
ing
foo
d
assi
stan
ce is
stil
l fo
un
d, p
artic
ula
rly
in P
has
e I
of
dis
bu
rse
me
nt.
LIM
ITA
TIO
NS
:N
ot
allb
en
efic
iarie
sh
ave
ce
llula
r p
ho
ne
s.
Th
e e
lde
rly
still
face
p
rob
lem
s in
usi
ng
ce
llula
r p
ho
ne
-bas
ed
tr
ansa
ctio
ns.
Ne
ed
PIN
for
tran
sact
ion
se
curit
y.
Th
e p
ract
ice
of
pac
kag
ing
foo
d
assi
stan
ce is
stil
l fo
un
d, p
artic
ula
rly
by
age
nts
/m
erc
han
ts
that
had
no
t so
ld fo
od
ite
ms
be
fore
.
43
RECOMMENDATIONS
The pilot activity provides the following recommendations in preparing the plans of
the Government of Indonesia to improve the Raskin Program by employing the noncash
banking disbursement mechanism:
a. Preparing the Beneficiary Data
i. If time is sufficient, a recheck of potential beneficiaries should be done by
the local government at the kelurahan level and a data updating application can
be provided to input data at the kelurahan level.
ii. If time is limited, a recheck of potential beneficiaries can be done alongside
registration at the kelurahan level jointly by kelurahan and bank officers by
openingaspecial‘townhall’counter/desk.
b. Socialisation, Education, and Notification to Beneficiaries
i. Given that noncash food assistance is a new program, socialisation is very
important and needs to be executed very well.
ii. Socialisation for implementing noncash food assistance should be done by
conveyingtwomainmessages,namely:informationabouttheprograminwhole;
and the disbursement mechanism in the pilot, including registration and
transaction locations.
iii. A combination of means/devices for socialisation needs to be employed,
including letters, audio visuals, guidebooks, information sheets, list of
merchants/agents/stalls/shops, posters to provide an understanding to
beneficiariesandmerchants/agents/stalls/shops.
iv. A Person-in-Charge (PIC) needs to be determined to receive further information
and confirmation to address misunderstandings about the program (purpose,
objective, scope of activities, and other related matters).
v. Educationtobeneficiariesandbanks’merchants/agents/stalls/shopspartners
shall be done intensively at the beginning of the program to increase
SUMMARY REPORT
44
understanding about assistance disbursement, both for social and food
assistance.
vi. Topics to be covered in this education include: (1) ways of using certain
transaction modes in using the benefits to be received; (2) the significance of
the PIN and its use aswell as the need for confidentiality and consequences
if the PIN is no longer confidential; (3) role of agents in the noncash
disbursementsofsocialandfoodassistances; (4) therightsandobligationsof
merchants/agents/stalls/shops as partners of banks, how to use transaction
modes, and types of program benefits. It is also important to emphasize in
the socialisation and education that beneficiaries are not allowed to purchase
other types of food, outside those prescribed.
c. Transaction Modes/Devices, Registration, and Activation
i. Program implementers need to consider the strengths and limitations of each
transactionmode/devicepriortodecidingonthetransactionmode/deviceto
be used.
ii. Debitcardsorcellularphoneshavetheirownstrengthsandlimitations,sorelying
ononetypeoftransactionmode/devicetobeusedforanational-scaleprogram
risks hindering disbursement. In addition, banks participating in the program
need to apply risk management and innovation with respect to transaction
modes/devicetobeused.
iii. There needs to be support from the local government to provide the required
identification documents or certificates. Opening a bank account requires
identification documents such as KTP (ID Card) and Family Registration Card
(Kartu Keluarga/KK) to meet the bank’s KYC requirements and not all
beneficiaryfamilieshavetherequireddocuments.
d. Availability and Distribution of Agents/Stalls/Shops
i. The number of bank agents is currently not sufficient.The ratio of merchant/
agent/stall/shoptobeneficiariesshouldideallybe1:150,therefore,thenumber
of agents needs to be increased to meet this ratio.
45
ii. Banks need to have at least two merchants/agents/stalls/shops in one
kelurahan/village. This is to ensure that beneficiaries have a choice, to avoid
excesspricingor theprovisionofgoodswithsubparqualityat themerchant/
agent/stall/shop level, and to provide support if there are problems with
transactionequipmentinanymerchant/agent/stall/shopfacility.
iii. Banks need to consider OJK requirements regarding recruitment of Laku Pandai
agentssotherewillbenodelays/hindrancesinrecruitingmerchants/agents/
stalls/shops to support the noncash disbursements of food and social
assistances.
iv. MerchantswhoarealreadybankagentswithIndonesianlegalentitystatusneed
to be involved to ensure that their numbers are sufficient to implement the
noncash food assistance program in 2017.
v. Banks need to conduct regular training for merchants/agents/stalls/shops,
particularly in how to operate transaction devices.
vi. Banks need to provide a technical support team in every region to assist
merchants/agents/stalls/shopswhenneeded.
e. Improving the Effectiveness of Implementing the Noncash Mechanism
i. Food items to be available at merchants/agents/stalls/shops aswell as their
equivalent pricing and quality need to be formulated.
ii. Variations in the types of food (for instance rice variants sold) at merchants/
agents/stalls/shopsdeterminethevarietyofchoice/purchasingbybeneficiaries.
iii. Independent registration mechanism for all retailers to apply for becoming
merchants/agents/stalls/shopsservingnoncashtransactionsisneeded.
iv. Mechanismforinvolvementandactiveroleofstakeholdersatkelurahan/village
levelinidentifyingpotentialmerchants/agents/stalls/shopsisneeded.
v. Improving information networks and cooperation is needed between
SUMMARY REPORT
46
merchants/agents/stalls/shopsandfoodsuppliers/distributors.
vi. Liquiditysupportformerchants/agents/stalls/shopsisneededtoprovidecash
withdrawal services (for the electronic money).
f. Exchanging Electronic Food Vouchers and Withdrawing Electronic Money
i. Inexchangingelectronicvoucherstoobtainin-kindbenefits,merchants/agents/
stalls/shops are obligated to provide: (1) proof of transaction and balance
informationtobeneficiaries;and(2)clearinformationtothebeneficiariesabout
the price of rice, eggs, and milk sold —for example, by displaying the price of
every type of food item.
ii. In cash withdrawals of the electronic money, banks must ensure that
beneficiaries can make the withdrawals through merchants/agents/stalls/
shopsbyensuringtheirliquidityand/orattheclosestATMatlowcost.
g. Service to Beneficiaries
i. Ensuring there is a complaint mechanism regarding products, the program, and
themanagementinthefield.
ii. Banksandthelocalgovernmentsprovideaspecialmechanismforbeneficiaries
who are elderly, vulnerable, and with special needs during the socialisation,
openingofaccounts,andutilizationofbenefits.
h. Involvement of the Local Government
In the implementation of the social and food assistance program, local
government should:
i. Play an active role in the program implementation, particularly in data validation
andverificationofbeneficiariesandsocialisationactivities;
ii. Togetherwithbanks,conductidentificationofprospectivemerchants/agents/
stalls/shops to be merchants/agents for noncash food assistance
disbursements.
iii. Play a role as information provider for the program and as a complaint channel.
47
HASIL IDENTIFIKASI
iv. Play an active role to suppress the practice of price fixing at the merchant/
agent/stall/shoplevel;and
v. Provideadministrativesupportinfilingforabusinesslicense(Surat Keterangan
Usaha/SKU)formicro-scalefoodsellerswhowanttoparticipateinthenoncash
food assistance program.
vi. Provideinformationregardingvariousissuesandtheirhandlinginthefield.
vii. Conductregularmonitoringonprogramimplementationinthefield.
i. Improving Transaction System and Infrastructure at the Agent/Merchant Level
i. ProgramimplementersneedtocoordinatewiththeMinistryofCommunication
and Informatics (Kementerian Komunikasi dan Informatika/Kemenkominfo)
to minimize the risk of cellular signal disruption to increase the success of
electronic transactions in every region.
ii. Ensuringinteroperabilityofbankagentssobeneficiariescanvisitanymerchant/
agent/stall/shop from different banks to conduct transactions. This will allow
increasedaccesstofoodassistanceinthefield.
iii. Continuity and sustainability of merchants/agents/stalls/shops. Agents must
have food stocks for the food assistance program and have the financial
incentive to conduct cash transfers, particularly for cash transfer programs.
48
49
50
THE NATIONAL TEAM FOR THE ACCELERATION OF POVERTY REDUCTION
Office of the Vice President of the Republic of Indonesia
Jl. Kebon Sirih No. 14, Jakarta Pusat 10110
Phone : (021) 3912812
Fax : (021) 3912511
E-mail : pokjabansos@tnp2k.go.id
Website : www.tnp2k.go.id
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