Social safety net program set to continue<\/p>\n
JAKARTA (JP): The government will continue the social safety
\nnet program despite a possible suspension of international aid to
\nIndonesia, National Development Planning Board chairman Boediono
\nsaid here on Tuesday.<\/p>\n
\"The government's social program in helping the poor such as
\nthe social safety net program (JPS) will continue,\" he said,
\nadding that the government would use existing funds to finance
\nthe project.<\/p>\n
The International Monetary Fund (IMF) and the World Bank
\nthreatened last week to suspend the disbursement of their loans
\nif the government failed to swiftly and satisfactorily resolve
\nthe Bank Bali scandal. The suspension will affect the US$600
\nmillion in soft loans from the World Bank to support the social
\nsafety net adjustments.<\/p>\n
The social safety net loan was initially scheduled for release
\nin March, but was delayed by the bank following reports from non-
\ngovernmental organizations of political abuse in aid disbursement
\nin gaining voters for the June general election.<\/p>\n
The government has allocated some Rp 6 trillion for the social
\nsafety net program during the 1999\/2000 fiscal year to help the
\npoor cope with the economic crisis.<\/p>\n
Boediono said the IMF had delayed its review mission, which
\nwas scheduled to take place by the end of this month, until the
\nBank Bali case, which involves the questionable transfer of Rp
\n546 billion from the bank to a company linked to the ruling
\nGolkar Party, is solved.<\/p>\n
The review postponement would mean a delay in the disbursement
\nof the agency's loan installment of $460 million for October.<\/p>\n
The agency has organized $43 billion in international bailout
\nfunds to help Indonesia cope with its worst ever crisis, of which
\n$12.3 billion will come from its own coffers.<\/p>\n
\"The IMF has called on the government to satisfactorily solve
\nthe Bali case, while the time span is not a question,\" Boediono
\nsaid.<\/p>\n
He said the possible suspension would not distract the
\ngovernment's efforts in carrying out its fiscal and monetary
\npolicies in accordance with the economic reform program agreed
\nwith the IMF.<\/p>\n
\"We will adjust our programs with the funds available at the
\ntime. We will be very flexible in running the programs,\" Boediono
\nadded. (01)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/social-safety-net-program-set-to-continue-1447893297",
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