COST BENEFIT ANALYSIS OF SOCIAL ASSISTANCE PROGRAMS, PIP, AND PRE-EMPLOYMENT CARDS ON POVERTY IN INDONESIAN SOCIETY
DOI:
https://doi.org/10.65886/ijde.v2i03.52Keywords:
Cost Benefit Analysis, Poverty, Social Assistance, PIP, Pre-Employment CardAbstract
This study aims to calculate the Cost Benefit Analysis of the three social intervention programs of the Indonesian government, namely, Cash Social Assistance (Bansos), Smart Indonesia Program (PIP), and Pre-Employment Card, in reducing poverty in Indonesia, as well as evaluating the effectiveness and efficiency of the three programs. The research gap in this study is the lack of studies that simultaneously evaluate the three main programs using the Cost Benefit Analysis (CBA) approach simultaneously. This study uses a descriptive quantitative method with an evaluative approach of CBA, involving 38 provinces in Indonesia by 2024, with secondary data from BPS and the official portal of each program. The results of the study show that the Social Assistance program has a national CBA ratio of 0.26, indicating that the benefits received by the community are much lower than the costs incurred by the government, which means that the Social Assistance program is inefficient in reducing poverty in Indonesia. The Smart Indonesia Program (PIP) is more efficient with a national CBA ratio of 1.17 which shows that the PIP program is efficient in reducing poverty in Indonesia, with the majority of provinces benefiting more from the cost, although there are some provinces with a CBA<1 ratio still facing challenges in the distribution and utilization of education funds. Meanwhile, the Pre-Employment Card shows the highest efficiency in reducing poverty in Indonesia with a national CBA ratio of 4.99, which means that it is efficient in reducing poverty in Indonesia. The conclusion of this study shows that the effectiveness and efficiency of government social programs vary between programs. The integration of CBA-based evaluation is needed to improve the targeting of government programs, so that the benefits of poverty alleviation can be optimized and felt sustainably throughout Indonesia.
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