NGOs help govt oversee social safety net program<\/p>\n
JAKARTA (JP): Universities and non-governmental organizations
\nhave been involved in the monitoring of the country's multi-
\nbillion dollar social safety net program to ensure aid reaches
\ntargeted population groups, a senior official has said.<\/p>\n
National Development Planning Board (Bappenas) Chairman
\nBoediono said on Friday that the involvement of such experienced
\nindependent institutions would ensure that the internationally
\nfinanced subsidy program would not fall prey to malfeasance.<\/p>\n
\"The monitoring system has been strengthened with the
\nparticipation of these independent institutions. We hope that the
\nallocation of the subsidies will be more effective and the state
\nfinancial burden for the subsidies can be gradually lessened,\" he
\ntold the House of Representatives Commission VIII on finance and
\nbudget.<\/p>\n
The World Bank last month warned the government that
\ninternational financial support for the social safety net program
\nwould be stopped unless it could ensure that the aid directed for
\nthe needy could be distributed without being abused by corrupt
\ngovernment officials.<\/p>\n
The warning followed news reports that some 20 percent of the
\nbank's aid to the country had been ill-used by government
\nofficials.<\/p>\n
The international community has pledged a total of US$14
\nbillion in aid, mostly to finance the country's 1998\/1999 social
\nsafety net program designed to help the poor survive the economic
\ncrisis.<\/p>\n
As much as half of the country's more than 200 million people
\nare believed to be currently living below the poverty line as a
\nresult of massive layoffs and weaker purchasing power.<\/p>\n
Boediono said the government had allocated Rp 17.25 trillion
\nin the current fiscal year ending in March next year to fight the
\nincreasing poverty problem.<\/p>\n
The social safety net program focuses, among other things, on
\nestablishing food security and employment creation.<\/p>\n
He added, however, that the government had revised its subsidy
\nstrategy. Instead of subsidizing certain basic food commodities,
\nit was now directly distributing heavily subsidized rice to
\ntargeted groups.<\/p>\n
The previous policy of subsidizing market prices for basic
\nfoodstuffs was deemed less effective since higher-income people
\ncould also benefit from the expenditures.<\/p>\n
In July, the government launched a program to provide 10 kg of
\nrice per month to the country's poorest families at a price of Rp
\n1,000 per kg, less than half the current market price.<\/p>\n
As of last month, the program covered more than four million
\nfamilies and is expected to exceed seven million this month --
\nless than half of the 15 million family target.<\/p>\n
Boediono said that due to the limited budget, the government
\ncould only provide rice to the poor at subsidized prices, not
\nother commodities.<\/p>\n
\"We will try to improve the distribution system and cut
\nvarious levies which have caused soaring market prices for the
\nother commodities,\" he said.<\/p>\n
The World Bank had said that fighting corruption was key to
\nthe return of confidence in the country and economic recovery.<\/p>\n
Boediono also said that the key to recovery was the return of
\nboth domestic and foreign investor confidence.<\/p>\n
\"We have to convince them that our country is a safe, fair and
\nprofitable place to do business,\" he said.<\/p>\n
\"If our economic reform programs go well, we can expect a
\nturning point for economic growth by 1999\/2000.\"<\/p>\n
The achievements of 30 years of economic development will not
\ndisappear despite the worst economic crisis to hit the country in
\ndecades, he said, pointing to the Indonesia's established
\ninfrastructure, skillful human resources and past economic
\nderegulations which had improved efficiency in certain
\nsectors. (rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ngos-help-govt-oversee-social-safety-net-program-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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