The Indonesian government provides an educational cash transfer program for low-income families with children aged 6-21 so that the children can complete their education up to secondary level (Program Indonesia Pintar – PIP). The COVID-19 pandemic from 2020 to 2022 might hamper the success of this program. Hence, this study aims to see how the PIP program affects the dropout rate of students from low-income families at the primary, junior secondary, and senior secondary levels before and during the COVID-19 pandemic. This study uses cross-sectional data from the National Socioeconomic Survey (SUSENAS) of 2019 & 2021 and applies the propensity score matching (PSM) method. The results show that before the pandemic in 2019, the PIP program reduced the probability of dropping out for students from low-income families at primary and junior secondary schools but not for students at senior secondary schools. However, during the pandemic in 2021, the PIP program reduced the probability of dropping out for students in junior secondary and senior secondary schools but not for students in primary schools. The PIP program only significantly reduces the probability of dropping out for junior secondary students, both before and during the COVID-19 pandemic.

Authors:
Nisma Anggara Samalo, Universitas Indonesia, Indonesia
Thia Jasmina, Universitas Indonesia, Indonesia

About the Presenter(s)
Ms. Nisma Anggara Samalo is currently a Research Assistant at Institute for Economic and Social Research, University of Indonesia (LPEM-FEB UI). Her interests are related to economics, education, and sustainable development.

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