JustUpdateOnline.com – Jakarta. The Indonesian government is set to modernize its social welfare system by distributing free mobile phones equipped with digital banking features to citizens. This initiative aims to streamline the delivery of social assistance (bansos) through a direct digital pipeline, ensuring that aid reaches recipients more efficiently.
During the Prasasti Policy Forum 2026 in Jakarta on Tuesday, Presidential Envoy Hashim Djojohadikusumo outlined the strategy. He emphasized that the goal is to bridge the gap in financial inclusion by ensuring every recipient has access to a digital financial ecosystem. Hashim, who is also the brother of President Prabowo Subianto, noted that the scheme is designed to facilitate direct transfers from the central government to the public.
Under this new framework, the previous requirement of a Rp50,000 deposit to open a bank account has been eliminated. The government has officially decided to waive these fees, allowing every Indonesian to hold a digital account at no cost. This policy shift signifies a transition from physical cash disbursements to direct electronic transfers managed by the Ministry of Finance and sent directly to the recipients’ mobile devices.
A specific segment of the program also targets the younger population. Citizens reaching the age of 17 who fall within the first four welfare deciles—representing the most economically vulnerable groups—will be eligible for free bank accounts that come pre-loaded with an initial balance of Rp50,000. This measure is intended to encourage the younger generation to engage with formal banking services from the onset of their adulthood.
To support this massive digital migration, the government has allocated an estimated budget of approximately Rp3.8 trillion. While the initial target for launching the account-opening phase is the final quarter of 2026, the full rollout of the program is expected to gain momentum in 2027. Beyond just providing hardware and accounts, the government is also developing strategies to ensure these digital tools are used for ongoing financial activities rather than remaining stagnant after the initial aid is received.
