Title: Policy challenges toward innovation of blockchain-based identity to achieve the 'no-poverty' sustainable development goal target 3 in Indonesia

Authors: Intan Soeparna; Novita Deviani

Addresses: Faculty of Law, Universitas Airlangga, Jl Dharmawangsa Dalam Selatan Surabaya, 60286, Indonesia ' Doctoral School of Faculty of Law, Universitas Airlangga, Jl Dharmawangsa Dalam Selatan Surabaya, 60286, Indonesia

Abstract: Providing social protection through subsidies is one of the aims of sustainable development goal (SDG) 1 (no-poverty) (target 3). It needs a particular method to deliver subsidies effectively. Indonesia embraced a process to disburse energy subsidies by implementing the innovation of blockchain solutions for digital identity. This study focuses on implementing blockchain-based identity management to support the fair distribution of energy subsidies in seven Indonesian cities. The method consists of a literature review to analyse the policy challenges that might hinder the implementation of blockchain-based identity in subsidy disbursements. The findings show that although the blockchain-based identity fruitfully supports the subsidy disbursement, the lack of policy support will create a lacuna in the validity of the method to disburse the subsidy. The study is expected to guide the government and organisation in adapting the blockchain solution to its future policy that can effectively harness to contribute to achieving the SDG 1 target 3.

Keywords: innovation; blockchain-based identity; policy; SDGs; sustainable development goal; no-poverty; subsidy disbursement method.

DOI: 10.1504/IJISD.2025.144828

International Journal of Innovation and Sustainable Development, 2025 Vol.19 No.2, pp.188 - 205

Received: 06 Aug 2022
Accepted: 03 Jul 2023
Published online: 04 Mar 2025 *

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