Vedro Imanuel Girsang, Jakarta – The budget for the Smart Indonesia Program (PIP), which provides financial aid for education to underprivileged families, has been reduced by nearly Rp4 trillion this year. According to Sofia Nurjanah, Head of the PIP Working Team, the total funds allocated for PIP this year are approximately Rp9.6 trillion.
"We still need to advocate for [the shortfall] with the Finance Ministry, Directorate General of Finance," Sofia said during her presentation at the PIP socialization event on Thursday, March 13, 2025.
Sofia explained that in 2024, the government allocated Rp13.4 trillion for PIP assistance. Previously, from 2015 to 2023, the government allocated Rp9.6 trillion for PIP assistance to students.
"In 2025, the initial budget allocation returns to the 2023 level," Sofia added.
Sofia also mentioned that the PIP assistance budget is not included in the Budget Implementation List (DIPA). This makes the budget allocation for the education aid program non-definitive, as it is not formally established through the DIPA.
"The PIP budget only uses APBNP (State Budget Draft), which is an additional budget from corrections made during the current year," Sofia explained when asked about the reduction in the PIP budget. "That's why in 2025, we are trying to secure the appropriate budget," she added.
She claimed that she could not provide further details regarding the PIP budget reduction. The authority related to the budget, Sofia said, lies with the Planning and Cooperation Bureau of the Secretariat General of the Ministry of Primary and Secondary Education.
"We do not manage the budget; we are budget users. So, it's quite difficult to explain," Sofia said.
Finance Minister Sri Mulyani previously assured that there would be no reduction for KIP College scholarship recipients in 2025. She confirmed that the Rp14.698 trillion budget for KIP College would still be distributed. "The budget is not affected by any reduction or deduction," she said.
According to her, there are 1,040,192 scholarship recipients for the 2025 fiscal year. All registered recipients will receive the full benefits.
For context, PIP, formerly known as Kartu Indonesia Pintar (KIP) or Indonesia Smart Card, is a type of social assistance provided by the government to those in need. According to its official page, the Smart Indonesia Program is designed to support school-age children from poor families, vulnerable poor families, or those in priority categories to continue accessing education services until completing secondary education.
– Novali Panji Nugroho contributed to the writing of this article.