Governor says flood victims not obliged to repay loans<\/p>\n
Ahmad Junaidi, The Jakarta Post, Jakarta<\/p>\n
The conditions for a Rp 66.8 billion (US$6.6 million) loan,
\nallocated to flood victims in the capital, are unclear as City
\nGovernor Sutiyoso said on Tuesday that the residents were not
\nobligated to return the loan.<\/p>\n
\"If they have a strong reason, then they do not have to return
\nthe loan,\" Sutiyoso said, after symbolically handing over a Rp
\n250 million loan to the Semanan subdistrict council in the
\nKalideres district of West Jakarta.<\/p>\n
He said that if a fire destroyed the stall of a vendor who had
\nreceived a loan, then he or she would have a strong reason for
\nnot returning the money and the city administration would write
\noff the debt.<\/p>\n
But he urged the council to carefully select the residents
\nbefore disbursing the loan, saying that the sanction would be
\ngiven to residents who could not return the loan without any
\nreason.<\/p>\n
All of the city's 267 subdistricts received Rp 250 million
\neach for the Subdistrict Community Empowerment Program (PPMK).<\/p>\n
The fund, which is aimed at helping boost the economy of
\nresidents affected by the floods, was to carry an interest rate
\nof 1 percent per month, did not require any collateral and should
\nbe returned within 24 months.<\/p>\n
Residents expressed skepticism that the loan would reach the
\nright hands. They said they suspected it would be disbursed to
\ncertain residents, including relatives of the subdistrict's head
\nor members of the subdistrict council.<\/p>\n
\"It's still unclear. Many residents have not been informed
\nabout it,\" Marju, a small-scale trader in Semanan, said as he
\nwatched the ceremony from outside the subdistrict building
\ncompound.<\/p>\n
Marju, whose house was damaged by the floods, predicted that
\nthe fund's use would be unclear just as the Rp 50 million grant,
\nwhich was handed over to the subdistrict.<\/p>\n
Last month, the administration granted Rp 50 million each to
\n167 of the worst flood-hit subdistricts for emergency aid during
\nthe floods. But it was not clear how the money was spent.<\/p>\n
Separately, the head of the City's People Empowerment Office,
\nRohana Manggala, revealed that some Rp 22 million of the Rp 66.8
\nbillion would be allocated to several non-governmental
\norganizations (NGOs), which assisted the subdistricts in planning
\nthe disbursement of the empowerment program loan.<\/p>\n
\"The NGOs will be paid according to the minimum wage (about Rp
\n500,000 a month),\" Rohana said, without mentioning the names of
\nthe NGOs.<\/p>\n
Many activists have criticized the program, which allegedly
\nmissed its target. Last year, the administration allocated Rp 50
\nbillion for 25 poor subdistricts.<\/p>\n
Much of the fund was used to finance the construction of the
\nlocal infrastructure, such as roads and public buildings, while
\nsome of the fund was lent to relatives of the head of the
\nsubdistrict.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/governor-says-flood-victims-not-obliged-to-repay-loans-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}