Compensation funds 'miss the target'<\/p>\n
Tertiani ZB Simanjuntak, The Jakarta Post, Jakarta<\/p>\n
A coalition of nongovernmental organizations has found that 75
\npercent of the state funds saved from lowering fuel subsidies
\nlast year missed the target.<\/p>\n
The Network for Community Empowerment (JKPM) announced on
\nThursday that a survey it conducted between November and December
\nlast year in 98 subdistricts in the provinces of North Sumatra,
\nLampung, West and East Java, West Kalimantan, South and North
\nSulawesi and East Nusa Tenggara revealed that the cheap rice
\nprogram was the only one to reach the lower income groups.<\/p>\n
\"This may have been caused by corruption, where the funds were
\nenjoyed not only by the poor, or because the programs had not yet
\nbeen completed because the government had difficulty in
\ndisbursing the money,\" JKPM presidium chairman Erfan Maryono
\nsaid.<\/p>\n
The government allocated Rp 2.2 trillion (US$21 billion) of
\ncompensation funds to ease the burden of the country's 49.7
\nmillion poor families, following the fuel price hike.<\/p>\n
Erfan said JPKM discovered, after interviewing around 2,000
\nfamilies, that as of December, not all of the funds had been
\ndisbursed to the villages, while the residents claimed to have
\nnever heard of the programs. Worse still, the officials also knew
\nlittle about the objectives of the programs.<\/p>\n
The survey found that the free medicines and vaccines had not
\nyet been distributed to the community health centers in the
\nvillages.<\/p>\n
Erfan said the programs should have reduced each poor family's
\nmonthly expenditure by Rp 30,000 ($2.80).<\/p>\n
\"But they could only enjoy the cheap rice at an average price
\nof Rp 1,000 to Rp 1,200 per kilogram if the subsidy totaled Rp
\n7,500 each month,\" he said.<\/p>\n
The government launched seven social programs after increasing
\nfuel prices by 30 percent in July 2001.<\/p>\n
Rp 833.4 billion of the funds were allocated to provide
\nscholarships and renovate school buildings, Rp 534.1 billion for
\nfree medicines and vaccines, Rp 279.9 billion to supply cheap
\nrice, Rp 216.4 billion for public transportation, Rp 174 billion
\nto provide clean water, Rp 105.8 billion to assist people in
\ncoastal areas and the remaining Rp 56.3 billion to help small-
\nand medium-sized enterprises.<\/p>\n
Smarting from the past experience, Erfan suggested that the
\ngovernment stop similar programs this year if they failed to
\nreach the poor, and allow direct control by the public.<\/p>\n
Erfan said JKPM would show its findings to the ministries
\nconcerned in order to help them find a better mechanism, as the
\ngovernment was intending to continue with the compensation fund
\nscheme.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/compensation-funds-miss-the-target-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
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