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.