`PPMK' fund fails to improve small businesses<\/p>\n
M. Taufiqurrahman, The Jakarta Post, Jakarta<\/p>\n
The distribution of the Subdistrict Community Empowerment Fund
\n(PPMK) has failed to improve the recipients' businesses, because
\nit is not supported by an entrepreneurship training program.<\/p>\n
Enjup, a resident of Pekojan subdistrict in Tambora, West
\nJakarta, said that her five-and-dime stall now generated less
\nincome, although she had received a PPMK loan of Rp 750,000
\n(US$83) to augment her assets.<\/p>\n
Considering that there was not much she could do with the
\nloan, she said, \"If I didn't receive money from my husband's
\npension fund, I would have problems paying my installments.\"<\/p>\n
Her stall, located down an alleyway in the neighborhood of
\nPekojan, did not stock a variety of goods for sale.<\/p>\n
The PPMK program was launched in 2001 for 25 subdistricts in
\nthe city and in 2002, each of the 267 subdistricts in the city
\nreceived Rp 250 million in a revolving fund. This year, the city
\nadministration is expected to increase the aid to Rp 500 million
\nper subdistrict.<\/p>\n
A number of concerned urban activists voiced their opposition
\nregarding the fund's distribution, due to the alleged corruption
\ninvolving subdistrict officials and subdistrict council (Dekel)
\nmembers.<\/p>\n
Chairwoman of the City Community Empowerment Board (BPM),
\nRohana Manggala, however, said last week there were only five
\ncases of suspected graft, being investigated by police.<\/p>\n
The first four cases involved four members of four subdistrict
\ncouncils who allegedly misused a total of Rp 195 million last
\nyear. They occurred in Kelapa Dua subdistrict, West Jakarta, and
\nin three subdistricts in Central Jakarta: Karet Tengsin, Paseban,
\nand Bungur. In 2001, one graft case was detected. It involved Rp
\n719 million, occurring in Serdang subdistrict, also in Central
\nJakarta.<\/p>\n
The empowerment board had also found Rp 4 billion of bad debts
\nfrom a total of Rp 60 billion of PPMK funds disbursed last year.<\/p>\n
Nadi, a member of Dekel in Pekojan, admitted that there were
\nmany cases in which the PPMK alone could not do much to help
\ndevelop small-scale businesses.<\/p>\n
He told the Post that the disbursement of the loan was based
\nsolely on the size of the business.<\/p>\n
In 2002, Pekojan subdistrict received a PPMK worth Rp 250
\nmillion, of which Rp 196 million was later disbursed as loans to
\n239 small-scale businesses.<\/p>\n
\"If a street vendor runs a business with a total sales of only
\nRp 1 million per month and a profit of Rp 300,000, there is no
\nway for us to lend him credit worth more than the total sales,
\nbecause he will face difficulties in paying the installments,\" he
\nsaid.<\/p>\n
He was quick to add that there were also cases in which the
\nfund had been used to buy household appliances, such as a
\ntelevision set.<\/p>\n
\"Learning from our past experiences, we will develop a
\ntraining program for small-scale businessmen to improve their
\nentrepreneurship skills,\" he said.<\/p>\n
Separately, Agus Sucipto, an administrative staffer for the
\nfinancial management unit of the subdistrict council, said that
\nthe PPMK had been disbursed to those who badly needed loans.<\/p>\n
\"We even have a long waiting list,\" he said, adding that not
\nall small-scale businessmen in Pekojan would receive a loan, as
\nfunds were limited.<\/p>\n
He said that his unit had made a profit from the 1 percent
\ninterest paid by debtors, along with the monthly installment.<\/p>\n
\"Thus far, we have collected Rp 16 million in profit since the
\nfirst disbursement in July 2002,\" Agus said.<\/p>\n
The profit, he said, would be used later as a revolving fund
\nfor other needy small-scale businessmen.<\/p>\n
\"In the long run, the PPMK fund and its returns will be used
\nas a trust fund for this subdistrict,\" he said, although he was
\naware that the city administration might stop distributing the
\nfund in the next few years.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ppmk-fund-fails-to-improve-small-businesses-1447893297",
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"sponsor_url": "https:\/\/okusiassociates.com"
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