Bappenas admits political abuse<\/p>\n
JAKARTA (JP): Chairman of the National Development Planning
\nBoard (Bappenas) Boediono admitted on Wednesday the country's
\nmultibillion dollar social safety net fund was abused by certain
\npolitical parties seeking to gain popularity.<\/p>\n
Boediono declined to name the political parties, but said the
\ngovernment would not halt the social safety net program despite
\nthe abuse.<\/p>\n
\"We will continue with the safety net program. What needs to
\nbe improved will be taken care of, what is bad will be eliminated
\nand what is good will be maintained,\" he said after briefing his
\nstaff members charged with running the program.<\/p>\n
Boediono told his staff not to use the social safety net fund
\nto further the political interests of certain political parties.<\/p>\n
\"We're working here for the people. We won't support any
\npolitical party,\" he said.<\/p>\n
Indonesia is scheduled to hold a general election on June 7,
\nthe first free and fair elections after more than 32 years under
\nthe authoritarian rule of former president Soeharto.<\/p>\n
The social safety net program is designed to help the poor
\nsurvive the current economic crisis. The government allocated
\nsome Rp 17.9 trillion to finance the program in the 1998\/1999
\nfiscal year ending in March, but only around 80 percent of the
\nfunding was distributed. The remaining funds will be included in
\nthe Rp 6 trillion allocated for the program in the 1999\/2000
\nfiscal year.<\/p>\n
The social safety net program for the current fiscal year is
\nexpected to be financed mainly by international lending
\ninstitutions.<\/p>\n
The World Bank has delayed releasing US$600 million in
\nfinancial assistance for the program. The funds were to be
\ndisbursed at the end of the 1998\/1999 fiscal year in March.<\/p>\n
Non-governmental organizations have accused the ruling Golkar
\nParty of abusing the social safety net fund to increase its
\npopularity ahead of the elections.<\/p>\n
In a joint press conference with the World Bank last month,
\nBoediono said the government and the bank were discussing new
\nways to improve the effectiveness of the social safety net
\nprogram and gain international financial support.<\/p>\n
Ben Fisher, a senior World Bank official in Jakarta, said
\nonce the government and the bank agreed on a new monitoring
\nsystem for the fund, the bank's board of directors would approve
\nthe disbursement of the loan. The board is scheduled to convene
\non May 18.<\/p>\n
International Monetary Fund Asia Pacific director Hubert Neiss
\nis currently in Jakarta to review the country's economic reform
\nprograms, including the social safety net program.<\/p>\n
Meanwhile, Boediono welcomed positive developments on other
\nfronts, particularly the improving picture of the country's
\nmacroeconomic condition.<\/p>\n
He pointed to declining inflation and interest rates and a
\nmore stable exchange rate for the rupiah against the US dollar.<\/p>\n
\"If we can implement a nonviolent and credible general
\nelection, I'm optimistic that everything (the economy) will grow
\nagain,\" he said.<\/p>\n
Indonesia has been hit by a 22-month long economic crisis. The
\neconomy contracted by more than 13 percent in 1998 and by more
\nthan 10 percent in the first quarter of 1999 compared to the same
\nperiod last year. The government is expecting the economy to
\nbottom out some time in the middle of the current fiscal year.<\/p>\n
Boediono said the international community would continue to
\nhelp the country lift itself out of its worst economic crisis in
\nthree decades.<\/p>\n
\"They (international donors) may not necessarily support the
\ncurrent government, but obviously they're supporting this
\ncountry's recovery,\" he said. (rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bappenas-admits-political-abuse-1447893297",
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