International Journal of Humanities and Social Science Vol. 9 • No. 3 • March 2019 doi:10.30845/ijhss.v9n3p16 126 Conditional Cash Transfer Breaks the Chain of Poverty for Next Generation Elly Kuntjorowati Ikawati Sri Yuni Murtiwidayanti Trilaksmi Udiati Center for Research and Development of Social Welfare Services Ministry of Social Affair Jalan Kesejahteraan Sosial No 1. Yogyakarta Indonesia 55002 Abstract This research is an evaluation of a conditional social assistance program called the family hope program (PKH). PKH or CCT is a poverty alleviation program aimed at very poor households with the aim of increasing human resources through improving children's health and education. The research problem posed is how the influence of PKH or CCT in the fields of health, education, and the economy in breaking poverty for the next generation, as well as supporting factors and obstacles to the implementation of the program. The research objective was to determine the influence of PKH or CCT in the fields of health, education, and the economy in breaking poverty for the next generation, as well as supporting factors and obstacles to program implementation. The research method uses the mix method namely quantitative and qualitative. The results of the study showed that PKH or CCT had an effect on the education, health and economy of beneficiary families. Recommendations require the role of local government, especially in updating data to the right target. Keywords: CCT, Poverty, Next Generations. 1. Introduction Poverty can be described as a condition that is lacking in meeting basic human needs which include clothing, food, shelter, the need for healthy living, the need for education and the need to get awards (Elly Kuntjorowati, 2016). According to BPS data, the number of poor people in Indonesia in March 2018 reached 25.95 million people (9.82 percent), a decrease of 633.2 thousand people compared to September 2017 which was 26.58 million people (10.12 percent ). In Indonesia there are still many poor households that cannot meet the basic needs of education and health because the root causes of problems occur both on the RTSM (demand) and service (supply) side. On the poor households side, the biggest reason for not continuing school is because there is no cost, working to make a living, feeling that education is sufficient. In addition to the health side, the reason for RTSM is because it cannot finance maintenance or health care for family members because of low income levels. Latin American countries were the first to introduce conditional cash transfers (CCT), and in recent years, a few Asian countries have also been doing so (e.g. Indonesia, India and the Philippines) (Devesh Kapur, Partha Mukhopadhyay, Arvind Subramanian, 2008). In 2007 the Government of Indonesia launched Hope Family Program (PKH), the first conditional cash transfer programme in Indonesia. The programme seeks to improve the quality of human capital by providing cash transfers conditional on households accessing specified health and education services. The PKH or CCT helps to reduce the burden of household/family expenditure for very poor households (the immediate consumption effect), while investing in future generations through improved health and education (the human capital development effect). This combination of short- and long-term assistance is the government’s strategy to sustainably lift PKH recipients out of poverty. Requirements that must be met by beneficiaries, especially in terms of health and education of children, it is in the interest of child development to become a healthy and intelligent generation(Kemensos RI, 2017). PKH in Indonesia is designed to help the poorer clusters of the population in the form of conditional assistance. This program is expected to be sustainable at least until 2015 and be able to contribute to accelerate the achievement of the Millennium Development Goals (or MDGs).