Dinda Shabrina, Jakarta – Social Affairs Minister Saifullah Yusuf, or Gus Ipul, has uncovered significant issues within Indonesia's social welfare system, revealing that more than 2,000 social institutions are fictitious, existing in name only without any real activities.
"Many of these institutions are unaccredited, and over 2,000 are merely fictitious entities existing in name only," Gus Ipul stated after a meeting with Coordinating Minister for Community Empowerment Abdul Muhaimin Iskandar at the latter's office in Jakarta on Tuesday, August 19, 2025.
He added that more than 85% of children living in orphanages are not actually orphans but still have at least one living parent. According to Gus Ipul, this situation highlights a weakness in the current accreditation system, which has been limited to administrative formalities.
"If accreditation doesn't provide incentives or sanctions, people are reluctant to improve services. This is what we will change," he explained.
The government is currently revising the social affairs ministerial regulation to ensure that accreditation becomes a genuine tool for guaranteeing the quality of care. Institutions that violate the new regulations will face strict penalties, while those that meet the standards will be formally recognized.
Gus Ipul pointed out that the cost of caring for a child in an orphanage is 5 to 10 times higher than family-based care, which provides a strong reason for the new regulations to focus on improving quality, not just legality.
In addition to accreditation reform, the government is also preparing for the digitalization of social assistance distribution. A new application, based on a Bank Indonesia Payment ID, is currently being tested in Banyuwangi. The ministry claims this system will distribute social assistance more transparently and ensure it is used only for essential needs.
"Accrediting orphanages, digitalizing social assistance, and the people's school program are part of a major strategy toward zero percent extreme poverty by 2026. It all requires strong regulations, consistent oversight, and community participation," Gus Ipul concluded.