For the purposes of this study social protection is defined as regular and predictable cash transfers that protect citizens against risk and promote human capital development. Access to cash transfers can also positively impact productivity and access to employment. However, evidence also reflects that, on their own, cash transfers may not be enough to systematically overcome structural barriers to employment and livelihoods. As such, many countries around the world link cash transfers with a range of complementary inputs to improve access to income-generating opportunities, often referred to as ‘cash plus’ or ‘graduation’ programs.

Such schemes often combine cash transfers with livelihood inputs, which can include inputs for micro-enterprises, linkages to markets and/or jobs, capacity building to strengthen livelihood skills and knowledge, among other services. Cash transfers supported with such complementary inputs are more likely to enable working age members within poor and vulnerable households to overcome social and economic barriers to labour supply and demand, provide them with an enabling environment to productively engage, and augment income more than cash transfers alone. Indonesia has vibrant social protection sector and a myriad of employment programs (e.g. vocational training, micro-enterprise schemes, cooperatives, etc).

Given this context, there is considerable potential to formalise linkages between the two and ensure that cash transfer recipients have access to complementary livelihood interventions that are suited to their preferences and needs. Despite the potential, such linkages have been limited. Although there are several government-led employment programs that exist at the local and national level, there is a knowledge gap on whether such schemes respond to the employment needs of the forty percent poorest families receiving social protection programs.

Furthermore, there are no coordination mechanisms among ministries implementing social protection and those implementing employment programs. There is also the potential in Indonesia to strengthen the labour productivity of poor families by providing them with opportunities to enhance existing traditional livelihoods. For example, in Peru’s national ‘cash plus’ program, Haku Winay, working age members within social assistance households are given access to technical inputs so that they can improve farming practices and improve their yield/profitability. Other similar programs – such as in Bangladesh and Lao PDR - also provide technical assistance to improve animal husbandry techniques, enabling poor families to meet the demands of local cattle and livestock buyers, thereby improving household income.

One of MAHKOTA’s end of program outcomes is to ‘increase incomes for the poor and vulnerable’. As a contribution to this outcome, MAHKOTA intends to assess how to improve access to livelihood opportunities, specifically for PKH beneficiary households. Consultations with relevant GOI partners have highlighted that improving livelihood opportunities for PKH households is a current GOI priority. MAHKOTA is therefore seeking to recruit a qualified firm to conduct this study.