Indonesian Government Plans Free Mobile Phones and Digital Bank Accounts for Citizens
The Indonesian government plans to distribute free mobile phones equipped with digital bank accounts to citizens to expand financial inclusion and streamline social assistance distribution, according to an announcement by Presidential Envoy Hashim Djojohadikusumo. detikFinance reported that the initiative involves delivering funds directly to recipients’ phones rather than through physical cash disbursements.
The policy emerged during cabinet discussions and targets approximately 30 percent of the Indonesian population currently lacking a formal bank account. Officials estimate that opening these accounts for citizens aged 17 and older will cost approximately Rp3,8 triliun, assuming an initial deposit of Rp 50.000 per account.
Cabinet Directs State Banks to Open Mass Digital Accounts
Cabinet meetings resulted in the assignment of two specific state-backed institutions—Bank Rakyat and Bank Syariah—to handle the creation of the new digital accounts. Hashim stated during the Prasasti Indonesia Policy Forum 2026 in South Jakarta that account opening fees of Rp 50.000 will be waived for eligible Indonesian citizens possessing an e-KTP and meeting the minimum age requirement of 17 years.
Complementing these figures, CNN Indonesia reported that the broader financial inclusion strategy specifically targets 25,1 juta residents categorized within the lowest economic brackets, known as desil 1 through 4. Coordinating Minister for Economic Affairs Airlangga Hartarto previously outlined the funding requirements during the Investor Daily Summit, highlighting the necessity of preventing these newly created accounts from becoming dormant.
Phasing Out Cash Disbursements Through Ministry of Finance Systems
Under the new distribution framework, traditional physical cash handouts for social welfare programs will be phased out entirely.
CNBC Indonesia noted that the digital system is designed to capture economic activity within the informal sector that currently operates outside recorded banking channels. In tandem with the digital account rollout, Deputy I for the Coordinating Ministry for Economic Affairs Ferry Irawan stated that a separate food assistance program valued at Rp30 triliun is scheduled to conclude between late October and early November 2026 to support household consumption levels.
Despite the administration’s push to digitize welfare payments, independent analysts have questioned the immediate fiscal burden of the policy. Activist and public policy reports from outlets such as Pijar News highlighted criticisms from Paramadina University economist Wijayanto Samirin, who characterized the mass account creation as non-urgent given current fiscal constraints.
Frequently Asked Questions About Indonesia’s Digital Account Program
What are the eligibility requirements to receive a digital account and mobile phone?
Citizens must be Indonesian nationals, possess an e-KTP, and be at least 17 years of age, with a particular initial focus on populations in economic desil 1 through 4.
How much will the government allocate for the initial account balances?
The administration has budgeted an estimated Rp3,8 triliun to cover an initial balance of Rp 50.000 for the newly opened accounts.