When social interest does not line up with private interest, we say the market fails. (The economist will say: It is when the social benefits curve lies below the demand curve; social optimum is at the crossing of social benefits curve and supply curve while market equilibrium is at the intersection of demand curve and supply curve. What drives the wedge? Negative externality).
Externality in the market invites government intervention: e.g. use tax to deal with negative externality and subsidy with positive externality. When there is an externality problem in the government we say the government fails.
When we have both market failure and government failure then we are really in trouble. What are the ways out? We can rely either on the market itself or on the government.
In cases like that of Indonesia, it is hard to believe that the government is efficient. The fact that we are still struggling with bureaucratic reform reveals otherwise. In other words, there are externality problems in the government. We do have government failure.
So it strikes me that some noted economists call for government provision of safety net as a prerequisite for removing the distortions in the market. That implicitly assumes that there is no problem with the existing government. Well, I don't buy that. After all, if the government can not solve its own problem, how come it even want to solve the problems in the market?