Jakarta (ANTARA) – National Economic Council (DEN) Chair Luhut Binsar Pandjaitan said integrating government data through government technology (GovTech) could reduce misdirected social assistance distribution from 77.6 percent to below 10 percent.
“The pilot project we conducted in Banyuwangi for GovTech uncovered numerous issues within the government that we are now addressing. As much as 77.6 percent of social assistance was off target. Now, with these improvements, we’re seeing that figure drop to below 10 percent,” Luhut said.
Speaking at the Del Institute of Technology (IT Del) reunion event in Jakarta on Saturday, he noted that data integration across government institutions is ongoing, allowing inter-agency databases to be connected and analyzed using artificial intelligence (AI).
He explained that GovTech development is nearly 80 percent complete, with plans for President Prabowo Subianto to launch the system in October 2026.
According to him, by the end of 2026, all government data will be linked to a single digital ID, which is expected to have a major impact on the country.
Luhut added that nationwide implementation of the digitalization initiative could significantly improve government efficiency by closing various loopholes and fostering a more transparent ecosystem.
“We calculated that government technology could save us over Rp1,200 trillion (approximately US$68 billion). It will plug leakages across various sectors and create an ecosystem where people are forced to be transparent, efficient, and free of corruption,” he said.
Luhut assessed that the digital transformation could be one of the key factors supporting Indonesia’s long-term economic growth.
He affirmed that the government would continue developing GovTech in phases, adding that President Prabowo had instructed that data integration move forward.
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Translator: Shofi Ayudiana, Raka Adji
Editor: M Razi Rahman
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