1. DEMO: 2 X 16
1. DEMO: 2 X 16
Fuel price increase
sparks massive protests
OR
Fuel price increase
met with massive demos
2. TKI: 3 X 15
Predawn raids
mark crackdown
on illegals
3. SOCC: 1 X 28
DONE BY BRUCE
4. FUEL: 3 X 16
Govt pledges funds
for poor free
from corruption
4. FUEL: 3 X 16
Govt pledges funds
for poor free
from corruption
Public concern that the Rp 17.8 trillion low-income assistance
fund from the reduction in the fuel subsidy will miss the target
-- which is some 16 percent of Indonesia's 220 million population
-- has prompted the government to make an all-out effort to make
sure that the money goes to the needy.
Among the efforts are the setting up of a special team tasked
with monitoring the channeling of the funds as well as allocating
a Rp 132 billion (US$14.27 million) special fund for the
"safeguarding" process.
"The safeguarding fund will be taken from the funds for the
poor. A special team consisting of officials from various state
agencies and non-governmental organizations (NGOs) will be tasked
with supervising the channeling of the assistance funds," State
Minister of National Development Planning Sri Mulyani Indrawati
said late on Monday after the announcement on the fuel price
increase.
The government announced an average of 29 percent increase in
fuel prices, arguing that the move was for the benefit of the
nation as it would lead to greater funding allocations for
welfare programs, encourage more efficient fuel usage and prevent
fuel smuggling.
The safeguarding efforts will include planning coordination,
monitoring, evaluation, supervision, auditing and the securing of
the low-income assistance funds.
"The government will task the Development Finance Comptroller
(BPKP) with auditing the low-income assistance funds each year to
track down any irregularities in the use of the funds," she said.
According to Mulyani, the success of the government in
channeling the funds could be measured at the end of the year
based on three categories -- target accuracy, the amount of funds
spent and time accuracy.
The assessment on whether the funds had or had not reached the
target will be conducted by the comptroller, NGOs and a private
auditor, she said.
The government has promised to allocate Rp 10.5 trillion of
the Rp 20.3 trillion saved by cutting the fuel subsidy to finance
a number of programs targeted directly at the poor.
The Rp 10.5 trillion will be added to the Rp 7.3 trillion
already earmarked in the 2005 state budget for programs aimed at
assisting low-income families and individuals.
The majority of the funds will go toward a scholarship
program, the purchase of subsidized rice for the poor, rural
infrastructure projects and health programs.
However, based on past experience, the low-income assistance
funds could become a target of corruption, particularly by local
administrations.
For instance, a coalition of NGOs has found that 75 percent of
the state funds saved from lowering fuel subsidies in 2001 have
missed the target, mostly due to corruption.
The government allocated Rp 2.2 trillion in low-income
assistance funds following a rise in fuel prices in 2001.
Recently, the comptroller also reported misuses of the 2001
assistance funds in 2003, worth Rp 21.56 billion or 1.48 percent
of the audit samples worth Rp 1.46 trillion.
The House of Representatives, however, later called into
question the comptroller's report as the figures mentioned were
too low compared to those arrived at by the NGOs.