Advancing Indonesia’s social protection programs: MSC’s support for G2P 4.0 implementation

• Dec 28, 2023
• 1 min

MSC supported Indonesia’s Ministry of National Development Planning (Bappenas) to strategize and implement the G2P 4.0 transformation program to improve SSP delivery. MSC provided insights and recommendations and proposed a reformed incentive determination and delivery processes. Bappenas used the proposed reforms to consult other government agencies and pilot-test the new reforms across seven regencies with 2,000 beneficiaries.

MSC supported Bappenas, the Indonesian Ministry of National Development Planning, to strategize and implement the Government of Indonesia’s ambitious G2P 4.0 transformation program. G2P 4.0 seeks to improve the delivery of social protection programs (SPPs). MSC led policy-support activities with CGAP around the vision’s two main building blocks: i) Incentive determination for payment service providers; ii) Transformation of awareness, communication, and socialization practices in the new system.

MSC conducted evidence-based research to provide insights and recommendations and proposed a reformed process to determine incentives and delivery for payment service providers. The team also projected the fiscal impact and conducted a cost-benefit analysis of the proposed incentives on government finances. We uncovered insights, created recommendations, and proposed a reformed process for awareness and socialization activities in the SPP delivery.

Bappenas used the proposed reforms to consult other government agencies, which included the central bank, line ministries, service providers, and other international development partners. The support was exemplary as it laid out a framework for private sector participation in SPP delivery in Indonesia. Bappenas used the proposed recommendations to pilot-test the new reforms across seven regencies with 2,000 SPP beneficiaries. Bappenas planned to analyze the pilot results for the proposed reforms’ potential national-level rollout.

The Bill & Melinda Gates Foundation commissioned the project.