Contribution of cash transfers in moderating household food insecurity in small-island communities: Experimental evidence from Indonesia

Abstract Small-island communities often heavily rely on artisanal fisheries as a source of food and income. However, seasonal variation in weather and oceanographic conditions of the fisheries makes small-island communities prone to food insecurity. The paper aims to assess how a lump-sum cash transfer mitigates the experience of food insecurity among small-island fishing communities. We conducted an artefactual field experiment on cash transfers based on a sample of 534 fishing households in the Kei Islands of Eastern Indonesia. Food insecurity at household level was measured using the US Household Food Security Survey Module, which captures various aspects of the hunger experience among adults and children in the household. We found that a lump-sum cash transfer of Rp 17 thousand (USD 1.4) or 5% of weekly household expenditure resulted in a 2-point score reduction on the 15-item food insecurity scale. Our results also suggest that an additional weekly household income of Rp 234 thousand (USD 19) is required to entirely eliminate household food insecurity in the study area. This amount is significantly greater than the amount provided through the official cash transfer programs in Indonesia. Our findings indicate that cash transfers could be an effective means of reducing food insecurity problems among small-island communities in Indonesia. However, complete elimination of food insecurity through cash transfers alone is impractical.