Program Keluarga Harapan (PKH): Indonesian Conditional Cash Transfer Programme

In 2007 the Government of Indonesia launched the Program Keluarga Harapan (PKH), the first conditional cash transfer programme in Indonesia. The programme seeks to improve the quality of human capital by providing cash transfers conditional on households accessing specified health and education services. The PKH helps to reduce the burden of household/family expenditure for very poor households (the immediate consumption effect), while investing in future generations through improved health and education (the human capital development effect). This combination of short- and long-term assistance is the government’s strategy to sustainably lift PKH recipients out of poverty. 

PKH is administered by the Ministry of Social Affairs (MoSA), with close supervision from the National Planning Agency (Bappenas). It began operating in 2007 as a pilot programme, with a research component inherently built into the programme. On the policy front, the implementation of a pilot project results in slow progress of the programme, which can be seen in its limited coverage (both in terms of the number of household and the areas covered). Since 2010 the Secretariat of the National Team for the Acceleration of Poverty Reduction (TNP2K), at the Office of the Vice-President, has been promoting the expansion of PKH to widen its coverage, make the programme administration more efficient, and increase its impacts on poor populations.