The researchers found that the program successfully protected low-income households from rising living costs during major religious holidays while generating economic activity in traditional markets. At the same time, the evaluation identified several administrative weaknesses—including data verification challenges, banking procedures, and delays in fund distribution—that should be addressed to improve future social assistance programs.
Seasonal Inflation Puts Pressure on Vulnerable Households
Badung Regency is widely recognized as one of Bali's strongest economic regions due to its tourism industry. However, the study notes that economic growth does not eliminate the impact of seasonal inflation, particularly before major religious holidays such as Galungan, Kuningan, Eid al-Fitr, and Vesak.
During these periods, prices of food, ceremonial supplies, and daily necessities often rise sharply. While Badung's poverty rate has gradually declined in recent years, the local poverty line has increased substantially, indicating that the overall cost of living continues to climb. This places significant financial pressure on low-income and near-poor households.
To reduce these pressures, the Badung Regency Government introduced a Religious Holiday Cash Assistance policy in 2025. The program provided Rp2 million to eligible households across six districts as a fiscal safety net designed to preserve purchasing power and reduce economic hardship during holiday seasons.
Mixed-Methods Evaluation Examined Both Data and Public Experience
Rather than focusing only on financial outcomes, the researchers evaluated how effectively the program was managed from a public administration perspective.
The study combined quantitative and qualitative research using a convergent mixed-methods design. Researchers surveyed 204 beneficiaries, conducted interviews with officials from the Badung Social Service, village administrations, and academics, and analyzed government documents including the Regent's Decree, social welfare databases, and financial reports. Statistical analyses were used to identify relationships between fund distribution, public satisfaction, and social outcomes, while interviews provided deeper insight into implementation challenges.
Cash Assistance Strengthened Household Purchasing Power
The evaluation found that the program effectively functioned as a social safety net during periods of seasonal inflation.
Among the most significant findings were:
- The cash assistance helped vulnerable households maintain purchasing power during holiday price increases.
- 98% of survey respondents reported that prices of essential goods increased before religious holidays.
- 79% of the assistance money was spent in traditional markets and neighborhood shops, supporting local traders and creating a multiplier effect throughout the local economy.
- The financial support reduced dependence on informal lenders and helped families maintain food consumption despite rising prices.
These findings suggest that well-targeted cash transfers can simultaneously protect vulnerable families and stimulate community-level economic activity.
Administrative Challenges Reduced Public Satisfaction
Although the policy achieved its primary objective, the study identified several weaknesses in implementation.
One major challenge involved verifying eligibility for workers in the informal sector. Because government agencies lacked integrated digital income data, local officials often relied on manual verification, increasing the risk of inclusion errors. The researchers identified several cases in which households with incomes above the eligibility threshold still received assistance because informal earnings could not be accurately verified.
Another issue emerged during digital fund distribution through regional bank accounts. Data inconsistencies involving national identity numbers, account registration errors, and newly created collective bank accounts delayed payments for many recipients. These technical problems also increased the workload for village officials responsible for resolving complaints.
Public satisfaction was further affected because some beneficiaries received only Rp1.9 million after banks automatically retained Rp100,000 as a minimum account balance. Statistical analysis showed that this reduction significantly lowered satisfaction among recipients who expected to receive the full amount.
Timing of Payments Influenced Social Stability
One of the study's most important findings concerns the timing of cash distribution.
Researchers found a statistically significant relationship between payment timing and the emergence of social conflict. When assistance arrived three to ten days before religious holidays, social tensions were minimal because households could immediately use the funds for holiday expenses.
However, when payments were delayed until after the holidays, dissatisfaction, complaints, and community tensions increased substantially. Statistical testing confirmed that payment timing was strongly associated with social stability, highlighting the importance of delivering assistance before seasonal expenses peak.
Digital Governance Could Improve Future Social Assistance
The researchers conclude that future social assistance programs would benefit from stronger digital governance and integrated public data systems.
Their recommendations include linking real-time information from Indonesia's Integrated Social Welfare Database (DTKS), civil registration records, taxation, and other government databases to improve beneficiary verification. They also recommend improving public communication, simplifying banking procedures, establishing transparent public review mechanisms, and ensuring that assistance reaches recipients at least one week before major religious holidays.
According to Ni Luh Yulyana Dewi and Felicianus Jaya Pranata of Universitas Pendidikan Nasional, the study demonstrates that cash assistance can successfully protect vulnerable communities during seasonal inflation, but its long-term effectiveness depends on accurate data, efficient administration, timely fund distribution, and digitally integrated governance systems.
Author Profile
Ni Luh Yulyana Dewi is a researcher from Universitas Pendidikan Nasional (Undiknas), Indonesia, specializing in public administration, public policy, social protection, and digital governance. She conducted this study with Felicianus Jaya Pranata, who is also affiliated with Universitas Pendidikan Nasional and works in the field of public administration and governance research.
Source
Article Title: Managing Electoral and Wallet Content: Cash Social Assistance in Controlling Seasonal Inflation in Badung Regency
Journal: Indonesian Journal of Interdisciplinary Research in Science and Technology (MARCOPOLO)
Publication Year: 2026
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