Principles and Approach to Targeting:With Reference to the Indonesian Social Safety Net Program.

The potential benefits of accurate targeting are substantial because public expenditures can be concentrated to the needy, thereby saving money and improving program efficiency. However, targeting also entails the administrative costs associated with identifying, reaching, and monitoring potential beneficiaries. In addition, there are also potential costs in the form of disincentive costs, stigma costs, and political economy costs. The experience of the recent Indonesian social safety net programs shows that targeting was one of the most difficult problems in the implementation of these programs. As a result, the programs were plagued by the twin problems of undercoverage and leakage.