The Impact of Transformation of Social Assistance on Financial Inclusion and Welfare of Beneficiary Families

Arief Fajar Firmansyah,Suharno Suharno,Arintoko Arintoko

doi:10.20884/1.erjpe.2021.16.1.1797

Arief Fajar Firmansyah, Suharno Suharno + Show 1 more

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https://doi.org/10.20884/1.erjpe.2021.16.1.1797

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Abstract

This study is based on the transformation of the distribution of cash social assistance into non-cash in the City of Tegal. The non-cash distribution is by using a banking account that has a combo card facility, which is a multi-function card that can be used as an ATM card as well as disbursement of social assistance. There is a slice of the objectives of the non-cash transaction referred to as an alternative to accelerate the increase in financial inclusion of the Indonesian population as stated in the National Strategy for Financial Inclusion with the financial inclusion index indicator. This study aims to determine the impact of the transformation of the distribution of social assistance on financial inclusion in Tegal City and the welfare of beneficiary families (KPM). Primary data were collected from questionnaires that have been filled in by KPM and secondary data were obtained from the Central Bureau of Statistics and the Representative Office of Bank Indonesia Tegal. The analytical tool used is a quantitative approach to KPM's response to the distribution of non-cash social assistance. As supporting data, in the problem of financial inclusion, analysis tools are used by qualitatively comparing financial inclusion that is generated as a result of the implementation of the distribution of non-cash social assistance to existing financial inclusion. The analysis shows that the acceptance and perception of KPM supports the transformation of non-cash social assistance distribution, this is supported by KPM's interest in using combo cards as a means of saving. On the other hand, the transformation of the distribution of social assistance to non-cash contributes to financial inclusion in the city of Tegal, namely the Agent Laku Pandai (LKD) contributing 75.20% to banking financial services in Tegal City. From the 4 Welfare Indicator Classifications, it is found that the welfare of KPM has experienced changes in welfare after receiving non-cash social assistance and has improved the welfare of the beneficiary community (KPM).Keywords : Non-Cash Social Assistance, PKH, BPNT

Highlights

The government, through Bank Indonesia and Otoritas Jasa Keuangan (OJK), is trying to improve financial inclusion and financial literacy
The calculation method is to compare the number of account ownership through participation as keluarga penerima manfaat (KPM) Program Keluarga Harapan (PKH) and Bantuan Pangan Non Tunai (BPNT) non-cash social assistance with the total population who have accounts, and 4) Mc Nemar test to see the condition of KPM which will be measured through the fulfillment of needs before and after receiving social assistance
Based on the analysis and discussion this study finds that there is no gap between KPM's Acceptance and Perception of the transformation of the distribution of social assistance to non-cash, so that KPM supports and accepts the transformation of social assistance

Summary

Introduction

The government, through Bank Indonesia and Otoritas Jasa Keuangan (OJK), is trying to improve financial inclusion and financial literacy. The results of the National Financial Literacy Survey (SNLIK) by Otoritas Jasa Keuangan (OJK) in 2019 on the financial inclusion index are very encouraging, namely 76.19% or an increase of 8.39% from the previous survey period. The increase in the financial inclusion index was indicated by government support through the National Strategy for Financial Inclusion (SNKI). In the National Strategy for Financial Inclusion (SNKI), financial inclusion is defined as the right of everyone to have full access and services from financial institutions in a timely, comfortable, informative, and affordable manner, with full respect for their dignity. Financial services are available to all segments of society, with special attention to the poor, productive people, migrant workers and residents in remote areas through three main variables: access, usage and quality

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