Politics · Indonesia · 2 hrs ago
Economist urges review of Indonesia’s proposed free-phone plan
Indonesia is considering giving free mobile phones to support digital welfare payments and expand access to financial services.
The plan is still under discussion, and the government has not announced final rules, costs or a distribution schedule.
University of Gadjah Mada economist Wisnu Setiadi Nugroho says phone ownership may not be the main barrier: 93.5% of Indonesian households already had a mobile phone in 2025, while some benefit recipients have inactive bank accounts and limited digital skills.
He argues that other public services may bring clearer long-term benefits, including basic education, health care and efforts to reduce child stunting.
At Rp1 million per phone, he estimates that providing 20 million devices would cost Rp20 trillion, while 74 million would cost Rp74 trillion, before distribution and other expenses.
He also warns that devices could be resold or bought at inflated prices, weakening the program’s purpose and adding costs.
The government has not yet set out what happens next; the plan’s details remain to be decided.
Economist Wisnu Setiadi Nugroho says Indonesia should review a proposed plan to give free mobile phones to the public.
The plan is intended to support digital delivery of government assistance and expand access to financial services.
Wisnu argues that inactive bank accounts, low digital literacy and limited cash-withdrawal points are bigger obstacles than a lack of phones.
He warns that purchasing and supporting devices could place a large, recurring burden on public finances.
The government has not announced the phone-distribution schedule, recipient criteria or detailed mechanism.
- Who
- Economist Wisnu Setiadi Nugroho urged a review. The proposed plan was disclosed by Hashim Djojohadikusumo.
- What
- The government is considering giving free mobile phones linked to digital bank accounts.
- When
- The plan was disclosed at an event on 13 October 2026. No distribution schedule has been announced.
- Where
- Indonesia.
- Why
- The phones are intended to support digital delivery of government assistance and expand access to financial services.
Wisnu Setiadi Nugroho
Supporters of the free-phone plan
Urgency
Wisnu Setiadi Nugroho
Wisnu says the plan needs review because most households already own phones and other barriers remain.
Supporters of the free-phone plan
Hashim said the phones and linked digital accounts are intended to expand financial access and help deliver assistance directly.
Use of public funds
Wisnu Setiadi Nugroho
Wisnu argues that education and health services may offer clearer long-term social benefits.
Supporters of the free-phone plan
The plan could support digital delivery of assistance, but its costs and budget readiness have not been detailed.
Implementation
Wisnu Setiadi Nugroho
Wisnu warns of recurring costs and risks that devices may be sold or transferred.
Supporters of the free-phone plan
The plan’s distribution mechanism and recipient criteria have not been officially clarified.
Hashim Djojohadikusumo described the proposed phones and digital accounts at the Prasasti Indonesia Policy Forum in South Jakarta.
ANTARA reported that the government had not detailed the phone distribution mechanism, schedule or recipient criteria.
Kompasiana.com published an article discussing the plan’s urgency, costs and implementation risks.
Wisnu Setiadi Nugroho called for the proposal to be reviewed.
- Households with mobile phones
- 93.5% in 2025, according to Indonesia’s statistics agency
- Inactive social-assistance accounts
- More than 10 million, according to PPATK as reported by VIVA Jogja
- Illustrative device cost
- Rp1 million per phone
- Illustrative cost for 20 million recipients
- Rp20 trillion for device procurement alone
- Illustrative cost for 74 million recipients
- Rp74 trillion for device procurement alone
- Digital social-protection system
- More than 3 million families registered across 153 regencies and cities in 38 provinces, as of August 2026
3 sources
What people are saying
The urgency is low. The problem lies in unused accounts, low digital literacy, and uneven cash withdrawal points.
Compared with this, basic education and health services provide much clearer long-term social returns than distributing devices whose benefits remain speculative.
Every citizen will be given a mobile phone with a digital account. All funds will be there and sent to each recipient’s account.
Digitalization of social assistance is important, but distributing free phones is not the only shortcut.