Activist urges delay of Rp 250 million loan disbursement

Activist urges delay of Rp 250 million loan disbursement

Ahmad Junaidi, The Jakarta Post, Jakarta

An activist urged the city administration to postpone the
disbursement of loans worth Rp 250 million (US$25,000) for each
of the city's 265 subdistrict due to the dubious integrity of the
people who would be responsible for managing the funds.

Jakarta Residents Forum (Fakta) chairman Azas Tigor Nainggolan
said that the administration should postpone the disbursement in
order to prevent the loans being misused.

"Given the unclear integrity of the non-governmental
organizations (NGOs), subdistrict officials and subdistrict
council (Dekel) members, it's quite possible that the funds will
be misused," Tigor told The Jakarta Post on Saturday.

Last week, Jakarta Governor Sutiyoso officially launched the
program which is aimed at helping restore the economic activities
of residents, especially those affected by the recent floods.

The funds would be managed by the subdistrict heads and
councils. The subsequent disbursements of soft loans to needy
residents would then have to be approved by an NGO.

The NGOs would receive Rp 22 million under the scheme.

The loans, which would bear interest of 1 percent per month,
would have to be repaid within 24 months. But a loan could be
written off if a debtor could show good reasons, such as if his
merchandise was destroyed by fire.

The Jakarta Study Center (PPJ), which often supports the city
administration, said they were not involved in the scheme.

"We are ready to help, but it's better if the administration
appoints NGOs that are based in the subdistricts to manage the
loan," the PPJ's secretary Ganda Hutabarat told the Post.

Rohana Manggala from the city's People's Empowerment Office
had earlier stated that the NGOs would be selected by the
subdistricts.

Meanwhile, several subdistricts and councils claimed that they
knew nothing about the NGOs. A subdistrict council member even
told a Post reporter that he would set up an NGO to handle the
loans.

City spokesman Muhayat said on Saturday that the NGOs would be
ppointed by the mayoralties, but he did not elaborate.