Indonesia has experienced strongeconomic growth over the last forty years. At the same time,the proportion of Indonesians living below the poverty linehas fallen dramatically. Nonetheless, around 12 percent ofIndonesians remain in poverty and another 30 percent remainhighly vulnerable to falling into poverty in any given year.In addition, Indonesia has experienced a number of crises inthe last two decades, and such shocks are likely to continuein the future in an increasingly integrated global economy.Over the last fifteen years the Government has beendeveloping social assistance programs designed to promotethe poor out of poverty and protect poor and vulnerablehouseholds from both individual and more widespread shocks.The coverage, design and implementation of these programscontinue to be improved as social protection in Indonesiamatures, but a number of issues remain. One of the mostimportant, and difficult, is how these programs canaccurately target households who need those most. Thechallenge is to develop a targeting approach which includesmost of the poor and vulnerable while minimizing leakage tothe rich. At the same time, the system must be feasible,affordable, and accepted and used by all. Furthermore,identifying which households are poor is a difficult task inany developing country, but is particularly so in Indonesia,which has a very large population, a high degree ofgeographic dispersion, decentralization of much budgetaryand operational governance, and frequent entry and exit ofhouseholds into and from poverty. This evidence-based reportbuilds in part on innovative research done collaborativelywith the Government of Indonesia. In this respect Indonesiais contributing to the frontier of global knowledge ontargeting, while also drawing on the experience of othercountries. Moving from a thorough assessment of the currenteffectiveness of targeting in Indonesia, the report containspractical and detailed recommendations for the future. Inparticular, a National Targeting System is proposed, whichenvisages developing a single registry of potentialbeneficiaries to target social assistance to the righthouseholds, resulting in more accurate and cost-effectivetargeting outcomes, and ultimately stronger program impacts.