THE ROLE OF BLOCKCHAIN TECHNOLOGY TO SOLVE A PROBLEM DISTRIBUTION OF GOVERNMENT ASSISTANCE WAGES SUBSIDIES -Wahyu Sardjono

ABSTRACT 

Many organizations, especially the government sector still use centralization-based activities such in public services. One of the activities organized by the government that requires a touch of blockchain technology is the distribution of assistance wages subsidies (BSU) from the government for Indonesian workers affected by the pandemic Covid-19. Practically, the implementation of assistance wage subsidies still met many problems. This paper will overview the role of blockchain to solve the problem of distribution of government assistance and wage subsidies. Using tools such as smart contracts, decentralized apps, interoperability framework, and Government-To-Person (G2P), distribution of wage subsidy assistance can take place in a transparent and accurate manner and reach the beneficiaries.   

INTRODUCTION 

In the contemporary world, almost every business sector is shifting through digitalization. The government sector is no exception.  One of the challenges faced by the government sector in technology implementation is the bureaucratic system.   How to manage technology-based information management without having to undermine the bureaucratic order, The bureaucratic system still uses multilevel approvals that more and more parties are involved to verify data, the more accurate, secure, and reliable the data.   The downside is that  it takes up a very long and convoluted process.   The use of blockchain technology in this century has become relevant to be adopted in the government sector because all its activities will cut down on long processes and will become much more efficient. 

The blockchain can be introduced as a distributed ledger spread across multiple computers which can be found all over the world and run by anyone with an Internet connection.  These distributed ledger systems enable different types of transactions to be recorded, reported and audited simultaneously in ways that significantly reduce the possibility of fraud or error, which is especially helpful in situations where there is a lack of trust between users.  One of the activities organized by the government that requires a touch of  blockchain technology is the distribution of  assistance wages subsidies (BSU) from the government for Indonesian workers affected by the pandemic Covid-19 .  In practice,  the distribution of  assistance from the  government still has to go through various stages of matching data from various related agencies.   Of course , in  the end this caused many problems ranging from finding invalid population  data ,  the length of the distribution process to assistance not reaching hands workers. 

LITERATURE REVIEW 

A blockchain can be introduced as a distributed ledger to record the measurements and transactions between devices.  Nowadays, most compliance data and information are audited by trusted third parties. The data still stored on paper or in a centralized database and these approaches are generate many problems.  The current method may cause conflicts such as human errors, data manipulation, falsification of information, low integrity data by each actor,inefficiency of paper processes, etc.  These distributed ledger systems allows different types of transactions to be recorded, reported and audited simultaneously in ways that significantly reduce the possibility of fraud or error.  

Many organizations, especially government sector, still using centralization-based activities such in public services.   Centralization data implements the exchange of information and manages traceability throughout the chain, but it generates following disadvantages lead to delays and lengthy process.  Blockchain technology could assuring reliability of records and streamlining access. A tracking system brought by blockchain allows regulators to view all transactions and product history in a real time. It also help regulators to do their job more efficient and effective.   Blockchain could also provide a significant improvement to governmental regulation practices and safety standards.  

By creating secure distributed, transparent and autonomous system blockchain may enable the removal of intermediaries in public management as trustees replacing them with more reliable system.