Stigma Paradox and Welfare Rights Claiming

The issue of stigma has long been a central topic of discussion regarding the low uptake rate of targeted welfare programs. However, empirical evidence examining this claim within Global South countries remains scarce, particularly in Indonesia. Our study employed a qualitative approach, utilizing data from 33 interviews conducted in two areas with high poverty rates, evaluating the extent of institutionalized stigma that deters individuals from claiming Conditional Cash Transfer (CCT/PKH) benefits. Contrary to prevailing assumptions, our study found no clear link between stigma and the uptake of CCT/PKH programs. We found that the direct experiences of the interviewee with the repeated mistargeting of CCT distribution in sites under examination have eroded the significance of stigma, leading to unashamed claims by beneficiaries, regardless of their eligibility. Furthermore, our research unveiled that the CCT/PKH distribution is not merely an institutional process; it is highly interdependent, influenced by complex personalized meanings among beneficiaries with diverse goals. For example, some beneficiaries use the CCT as collateral to access loans from informal financial institutions, while others use it for socio-cultural purposes. This research contributes to the social policy literature by emphasizing the dysfunction of institutionalized stigma in affecting the decisions of (non-)eligible individuals to access welfare benefits. © 2024 Norwegian Institute of International Affairs (NUPI).