JAKARTA: The Indonesian government is preparing to strengthen additional social assistance as a step-up effort to mitigate the potential domestic fallout from escalating tensions in the Middle East, an official said on Wednesday (March 18).
The ongoing conflict in the Middle East has the potential to cause social impacts in the form of inflation and a decline in purchasing power, the Minister of Social Affairs, Saifullah Yusuf, told reporters, emphasising the need for early government intervention.
Warning of ripple effects on inflation and household consumption, he said the anticipated economic pressures were expected to disproportionately affect lower-income groups, prompting calls for stronger social protection measures.
To address these risks, the minister proposed increasing social assistance through additional spending and possibly expanding the number of beneficiaries on a temporary basis.
He stressed that accurate and up-to-date data would be critical to ensure that aid reached those most in need.
Indonesia has in recent years relied on social assistance programmes as a key buffer against economic shocks, with authorities continuing to refine targeting mechanisms and delivery systems. - Xinhua
