Fear of Impoverishment amid COVID-19

KOMPAS/FRANSISKUS PATI HERIN

A child eats white rice in a former East Timor refugee housing complex in Oebelo, Kupang Regency, East Nusa Tenggara, on Friday (14/2/2020). Living below the poverty line causes children\'s nutrition to not be fulfilled.

In these hard times, everyone is afraid of contracting the SARS-CoV-2 virus. Furthermore, the working class also fears losing their job at any time. Getting sick while unemployed will eventually lead to impoverishment.

On 16 May 2020, Indonesia had over 17,000 confirmed Covid-19 cases, 35,000 patients under surveillance (PDP) and 269,500 people under surveillance (ODP). All in all, more than 300,000 people had their activities limited as they were either under surveillance or undergoing treatment.

Meanwhile, as of 7 April 2020, the Manpower Ministry recorded 1.01 million workers had been affected by Covid-19, comprising 873,000 furloughed formal workers, 137,000 terminated formal workers and 189,000 affected informal sector workers.

Also read: People Redistribute Social Aid to Others More in Need

A month later, the figure increased almost two-fold. As of 1 May 2020, the Manpower Ministry verified that 1.72 million workers were affected by Covid-19, comprising 1 million furloughed formal workers, 375,000 terminated formal workers and 314,000 affected informal sector workers. In addition, the status of 1.2 million workers were still being validated. Therefore, around 3 million workers had their household finances disrupted by the outbreak.

Based on these two dimensions, the fear of impoverishment is palpable for many people, especially as more than 10 percent of Indonesia’s population are in poverty.

In September 2019, 24.79 million Indonesians (9.22 percent of the total population) were living in poverty.

In September 2019, 24.79 million Indonesians (9.22 percent of the total population) were living in poverty. Villages had more poor people than cities. Some 6.69 percent of city residents were poor, while, at the same time, 12.6 percent of villagers were poor.

In general, poor people is defined as those with average monthly per capita expense below the poverty line (PL), namely Rp 440,538 per person per month. The figure comprises 73.75 percent of food PL and 26.25 percent of non-food PL, including fulfillment of shelter, clothing, education and health needs. The figure means that almost 10 percent of Indonesia have an average monthly expense of less than Rp 440,538 and, thus, are in poverty.

KOMPAS/TOTOK WIJAYANTO

Children cross a row of semi-permanent houses in a densely populated residential area in Muara Angke, Penjaringan, North Jakarta,  on Thursday (16/1/2020).

Impoverishment

Cambridge dictionary defines impoverishment as the condition of being or becoming very poor, or the act of making someone very poor. Indonesia has been familiar with the process of impoverishment since centuries ago.

Impoverishment can take place during disasters, like what the global community is facing nowadays. Impoverishment can also be triggered by social and political processes that create poverty.

In his 2005 book A History of Modern Indonesia, Adrian Vickers wrote that the Dutch enforced high taxes on the Sasak people in Lombok, West Nusa Tenggara, in the 19th century. This changed Lombok’s landscape as a rice granary into an impoverished and barren island.

Another example of impoverishment practice was suffered by farmers in Javanese villages during the era of Governor General Van den Bosch. The forced cultivation practice forced farmers to submit a fifth of their harvest yield to the colonial government.

Political and economic analysis on impoverishment in Indonesia prioritizes the process of primitive accumulation. In “Indonesia’s Original Sin: Mass Killings and Capitalist Expansion 1965-1966” published in the journal Inter-Asia Cultural Studies (2005), Hilmar Farid cited that a primitive accumulation process was done through the seizure of homes, lands and assets through mass violence on people accused of being Indonesian Communist Party (PKI) members or supporters in 1965-1966. This led to the separation of a huge number of people from their production and subsistence tools.

KOMPAS/DENTY PIAWAI NASTITIE

Participants in the action in the framework of World Women\'s Day 2020 unfolded a poser on Jalan MH Thamrin, Central Jakarta, on Sunday (8/3/2020). In this action, the masses voiced about diversity, gender equality, and the completion of violence against women.

In a more contemporary context, impoverishment in Indonesia is caused by industrialization, land conversion and marginalization. Referring to Kompas archive, it has been proven that land purchases by businesspeople in various regions have not led to sustainable economic added values for villagers. People only experience impoverishment (Kompas, 28/1/2016).

Impoverishment is also experienced by people affected by land conversions and evictions. One example is the eviction victims in the construction of the Jatigede Dam in Sumedang, West Java. The land compensation was not accompanied by compensation for lost livelihoods (Kompas, 13/7/2015).

A similar thing is also experienced by the victims of Lapindo mudflow in Sidoarjo, East Java. In an article titled “The Socio-Economic Impact of Forced Displacement: A Study on the Survivors of Lapindo Mudflow in East Java” published in Indonesian Institute of Science’s (LIPI) Society and Culture journal (2015), the writers cited that socio-economic problems for victims were not resolved through the compensation mechanism. Locals were impoverished due to payment delays in the purchase of their assets and the loss of productive lands.

Meanwhile, marginalized people are also impoverished. For instance, traditional faith communities are excluded by the state that refuses to recognize their beliefs, making it hard for them to access basic services, including jobs (Kompas, 6/1/2016).

This is because family relations that often still see women as second-class citizens, alongside underage marriage and workplace inequality.

Women also have higher risk of impoverishment. This is because family relations that often still see women as second-class citizens, alongside underage marriage and workplace inequality. In “Refusing to Fall: Women’s Narratives in Fighting Impoverishment” (Lies Marcoes-Natsir, 2014), it is cited that, for many women, the largest contribution for their poverty are discriminatory and prejudice-based social values and processes, institutions and practices that systematically marginalize them from economic, social and political resources.

Government program

With impoverishment in front of their eyes, being dependent on the government’s social safety program is probably the most relevant solution.

The government’s nationwide social safety nets include the Pre-employment Card Program, National Health Insurance (JKN), Smart Indonesia Program (PIP) and Family Hope Program (PKH).

KOMPAS/WAWAN H PRABOWO

Program Keluarga Harapan - Para pendamping Program Keluarga Harapan (PKH) menunggu kedatangan Presiden Joko Widodo untuk foto bersama usai mengikuti kegiatan pengarahan oleh Presiden Joko Widodo yang menjadi bagian dalam Jambore Sumber Daya PKH Tahun 2018 di Istana Merdeka Jakarta, Kamis (13/12/2018). PKH adalah program pemberian bantuan sosial bersyarat kepada Keluarga Penerima Manfaat (KPM) sebagai upaya percepatan penanggulangan kemiskinan, meningkatkan akses pendidikan dan kesehatan serta mendorong KPM hidup mandiri. Kompas/Wawan H Prabowo

In early 2019, the government prioritized four poverty reduction strategies, namely PKH for 10 million families, PIP for 20.1 million school-aged children, Indonesia Health Card for 96.8 million people or 40 percent of low-income population and non-cash food aid for 15.6 million families (Kompas, 24/1/2019).

PKH is a cash assistance program to help families access basic services, such as food, health and education. The program was launched by the Social Affairs Ministry in 2007 and had helped 10 million families as of 2018. The aid is given annually to eligible families with composition based on family members.

Meanwhile, PIP gives access to cash and education, in order to help alleviate education costs for individuals aged between six and 21 years old. The program was launched jointly by the Education and Culture Ministry, Social Affairs Ministry and Religious Affairs Ministry in 2014.

As of 1 May 2020, government records show that aid had been distributed to 3.1 million participants of a total allocation of 17.9 million participants ranging from elementary school students to high school students. The amount of aid annually is based on the education level, namely Rp 450,000 (US$30.30) for elementary school students, Rp 750,000 for middle school students and Rp 1 million for high school students.

For health, the government has established JKN as social safety net. JKN benefits include primary healthcare services, including inpatient and outpatient services.

The program was launched by the Healthcare and Social Security Agency (BPJS Kesehatan) in 2014. As of 30 April 2020, 132.6 million participants with contribution assistance recipient (PBI) status had been exempted for paying BPJS Kesehatan premiums. The funding for covering their health insurance is allocated in the state and regional budget.

It is managed by the Office of the Coordinating Economic Minister in partnership with private entities and is targeted to reach 5.6 million people in 30 registration phases.

The government’s latest program is the preemployment card, which has been redesigned to address people’s needs during the Covid-19 epidemic. The program gives individuals 18 years old and above access to trainings and monthly cash incentives and is prioritized for job seekers and micro, small and medium business owners affected by the epidemic. It is managed by the Office of the Coordinating Economic Minister in partnership with private entities and is targeted to reach 5.6 million people in 30 registration phases.

Some 3.3 million verified accounts participated in the first phase, of which 168.111 got through and would be eligible to receive Rp 3,550,000 in training and monthly allowances.

Ideally, the program is carried out under normal situation when program organizers have a proper database of vulnerable communities. However, under the current emergency condition, it is hoped that the program’s benefits can be expanded for affected people.

Instead of creating new programs that are prone to missing their targets, swift actions in adapting existing programs is a sensible option in averting impoverishment. (KOMPAS R&D)