Agus Heruanto Hadna, Media Wahyudi Askar
This study assesses the impact of Indonesia’s Program Keluarga Harapan (PKH), a Conditional Cash Transfer (CCT) initiative, on consumption expenditure among low-income individuals. Using an Instrumental Variable Quantile Regression (IVQR) approach, the authors find that while PKH generally improves household consumption, the poorest households benefit less than those in higher income quantiles. The heterogeneity in benefits suggests that the program’s design may inadvertently reinforce inequality among the poor.
The paper shows that regional, social, and administrative factors significantly shape CCT outcomes. The authors argue that targeting mechanisms should be improved to ensure fairness and efficiency, especially for households in the lowest income group. More adaptive program designs are needed to guarantee equitable poverty reduction and minimize unintended disparities among beneficiaries.
Reference:
Hadna, A. H., & Askar, M. W. (2022). The impact of conditional cash transfers on low-income individuals in Indonesia. ASEAS – Advances in Southeast Asian Studies, 15(1), 23–41. https://doi.org/10.14764/10.ASEAS-0067
Link:
https://aseas.univie.ac.at/index.php/aseas/article/view/6153