BLT Temporary Unconditional Cash Transfer
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World Bank, Jakarta
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The Bantuan Langsung Tunai (BLT) program
had a clear and modest objective: supplement consumption for
poor households facing unprecedented price increases. In
2005 subsidy cuts raised household fuel prices by an average
of over 125 percent with 88, 186, and 105 percent increases
in gasoline, kerosene, and solar (diesel) fuels
respectively. BLT, a direct cash transfer in four
installments over one year, funded from the implied
budgetary savings from subsidy reductions, was in many
respects the most significant Government of Indonesia (GOI)
response to these programmed increases in fuel prices. It
was targeted to the poor households who were benefiting
least from the old subsidy regime and most at risk from the
negative impacts on consumption from price increases. A
mostly-similar BLT was introduced again in 2008 when
international crises in both financial markets and in food
prices combined with another domestic reduction to fuel
subsidies. BLT provided just-in-time cash assistance to
households affected by an economic shock. BLT added cash
amounts to a household's budget equal to approximately
15 percent of regular expenditures in 2005. These transfers
were more than enough to cover increased expenditure on
fuels. Benefits continued for one year as shocks from
government policy reverberated through the rest of the
macro-economy, allowing beneficiaries time to readjust
spending patterns to new relative prices.
Palabras clave
ADMINISTRATIVE COST, ADMINISTRATIVE OVERHEAD, AGRICULTURAL INPUTS, AGRICULTURAL SECTOR, BIASES, BLT, BUSINESS CAPITAL, BUSINESS OPPORTUNITIES, CAPITA EXPENDITURE, CASH TRANSFER PROGRAMS, CASH TRANSFERS, COMMUNITIES, COMMUNITY HEALTH, CONFLICT, CORRELATES OF POVERTY, CORRUPTION, COST EFFECTIVENESS, COST OF ACCESS, CREDIT CRUNCH, DEBT, DISABLED, DISTRIBUTION OF BENEFITS, DISTRICT LEVEL, DISTRICTS, EARNINGS, ECONOMIC CRISES, ECONOMIC POLICY, ECONOMIC SHOCKS, ECONOMIC SURVEY, EMPLOYEE, EMPLOYMENT OPPORTUNITIES, EMPLOYMENT STATUS, EMPOWERMENT, ENROLLMENT, EPIDEMICS, EQUALITY, EXCHANGE RATES, EXCLUSION, EXPENDITURE, FEMALE, FEMALE-HEADED HOUSEHOLDS, FINANCIAL MARKETS, FOOD BASKET, FOOD CONSUMPTION, FOOD EXPENDITURE, FOOD ITEMS, FOOD PRICES, FOOD SECURITY, GOVERNMENT POLICY, HEALTH INSURANCE, HOME IMPROVEMENTS, HOUSEHOLD HEAD, HOUSEHOLD INCOME, HOUSEHOLD SURVEY, HOUSEHOLD WELFARE, HOUSEHOLD-LEVEL, INCIDENCE OF POVERTY, INCOME SUPPORT, INFORMATION MANAGEMENT, INFORMATION SYSTEM, INFORMATION TECHNOLOGY, INSTALLMENTS, INTERVENTIONS, LABOR MARKETS, LOANS FOR ENTREPRENEURS, MALNUTRITION, MICRO LOANS, NEIGHBORHOODS, NUTRITION, NUTRITIONAL STATUS, PHYSICAL CAPITAL, POOR, POOR CHILDREN, POOR HOUSEHOLD, POVERTY LINE, POVERTY RATE, POVERTY REDUCTION, POVERTY REDUCTION STRATEGIES, PUBLIC WORKS, RECEIPT, RECESSION, RESERVE ACCOUNTS, RURAL, RURAL AREAS, RURAL INFRASTRUCTURE, RURAL INFRASTRUCTURE PROGRAM, SAFETY, SAFETY NET, SANITATION, SAVINGS, SCHOLARSHIP, SOCIAL ASSISTANCE, SOCIAL WELFARE, SOURCE OF INFORMATION, TARGETING, TRANSFER AMOUNTS, UMBRELLA ORGANIZATION, URBAN AREAS, VILLAGE, VILLAGE LEVEL, VULNERABLE HOUSEHOLDS, WELFARE INDICATORS