Vol. VI / No. 5 | July 2025
Authors:
Tora Pandito, BSc Graduate from the Faculty of Economics at the University of Brawijaya, and former Researcher at United Nations Association
Summary
Indonesia’s socioeconomic progress has been marked by declining poverty alongside with rising inequality. One promising policy gaining traction in developed countries is the concept of Baby Bonds, which provides publicly funded trust accounts for every child at birth, offering greater financial support to those from lower-income families. By helping households gradually accumulate assets, Baby Bonds could enhance social mobility and reduce intergenerational poverty. However, successfully adapting this policy to Indonesia will require careful attention to regional disparities, low financial literacy, and unequal access to financial services. Effective implementation will also depend on strong regulations, targeted financial education, and investments in inclusive financial infrastructure. Sustainable financing will call for tax reforms that raise tax revenue without overburdening existing taxpayers, while international experience and pilot programs can offer practical guidance. Complementary policies and ongoing evaluation will help tailor Baby Bonds to Indonesia’s context, and if thoughtfully designed and supported, this initiative could foster greater socioeconomic inclusion and a more resilient, equitable future.
Keywords: Baby Bonds, socioeconomic inequality, political economy, poverty reduction