Poverty relief program is being planned in anticipation of fuel subsidies cutpending approval from House of Representatives.

Poverty relief program is being planned in anticipation of fuel subsidies cutpending approval from House of Representatives. To DKI Jakarta governor, Joko Widodo, cash assistance policy may imply a counterproductive social relation between central government and the country’s low income economy. The policy may discourage the poor to initiatively improve their living quality, depriving it from normative resources and institutional ground. Normative resources integrate modernizing values along progressive policies propelling industrialized economy and urbanization;  societal institutions place civic competence such as the Wawasan Nusantara and establishing collectives as standard of economic conduct. Governor’s concerns may have more significance with structural factors of poverty rather than the monetary effect of fuel subsidies cut to increased prices should it be approved–the bigger picture. Cash assistance has previously been provided for around 19,1 million poor households from year 2008 to 2009 in similar situation. Examination of structural poverty often leads to call for change on foundational level, answerable by social security programs modeled by Pola Kelembagaan Lokal, Pola Ekonomi Produktif, Pola Ekonomi Bersubsidi, and Pola Hibah. Developing forementioned social security programs does not eliminate granting of capital, “handouts”, to the poor. The case in point is whether or not the social relation of government and the underprivileged  indicates welfare efficiency and encourages social economic initiatives.

Readings: Mustain Mashud, dkk (2010), Soemardjan (1980), Sumodiningrat (1987)