The digitisation of social safety nets can help drive inclusion and reduce poverty while fostering more resilient social and economic development. Indonesia’s experience offers important lessons for other countries in how to do so through policy focus and careful design.

This paper examines Indonesia’s journey in digitising its social safety net, emphasising the scale and long-term nature of the initiative. It offers insights for other countries undertaking similar initiatives and poised to leverage future digital advancements.

Central to Indonesia’s success is unwavering government commitment, demonstrated through high-level political will and collaborative efforts across government agencies, regulators, local governments, the private sector, and international development partners. 

Indonesia’s approach highlights the value of tailored solutions and continuous experimentation rather than simply replicating the models of others. Sustaining progress requires ongoing commitment and adaptive strategies to navigate evolving government agendas and advancements in technology.

Key findings

• There is no one-size-fits-all approach: experimentation, sustained political will, and keeping pace with fast-changing technology have been key to its success
• A well-executed digitised social safety net offers direct operational gains and contributes to macro-level stability by managing economic shocks and enhancing public trust in government
• The next steps in Indonesia’s journey should focus on incorporating digital ID and data analytics to improve the performance and integrity of an expanded social safety net system; strengthening cybersecurity and data protection will also be critical.

Lessons for other countries

• Policy:  promote digitised social safety net systems as an effective tool of government policy for alleviating poverty and responding to crises, such as pandemics, in an increasingly shock-prone world. 
• Buy-in: secure strong commitment from political leaders, government agencies, regulators, and commercial players as well as program delivery workers and targeted beneficiaries in order to navigate complex long-term reform agendas. 
• Design: adopt a country-specific approach with tailored pilot projects to address the country’s unique contexts, paying particular attention to user readiness, accessibility, and convenience for all beneficiaries. 
• Fundamental tech: build a national ID database and social registry to streamline processes as vital foundations for digitisation. 
• Advanced tech: promote advanced data analytics and digital solutions to continuously enhance program performance, integrity, transparency, and accountability.