Banyumas farmers seek debt relief

Agus Maryono, The Jakarta Post, Purwokerto

Some 2,500 farmers in Tambak and Sampiuh subdistricts in Banyumas regency are seeking relief in respect of debt arrears worth Rp 2.1 billion under the farm credit scheme (KUT) following the destruction by storms of large areas of paddy fields in the regency by.

The farmers said they had no other assets left to sell in order to repay the loans that were due to mature this month.

Sanwirjaka, a resident of Tambak subdistrict, said that more than 1,300 farmers in the subdistrict were unable to repay their loans, which had been extended through the local administration.

"It is impossible for any of the farmers in the subdistrict to repay their debts as their rice fields have been completely destroyed by the recent floods. In fact, we are facing starvation because of the recent halting by the local government of its food aid for the disaster victims," he said, adding that no farmer had been able to harvest a rice crop in the subdistrict.

According to data from the Banyumas regent's office, the total loans disbursed by the central government to the regency amounted to Rp 36.93 billion, out of which only Rp 17.269 billion had been repaid through the local administration.

Rofiq, chief of the local administration's finance section, said he would forward the farmers' request to the Ministry of Finance in Jakarta.

"We are really confused by the absence of regulations on how to tackle such a case as this. It's the first case of its kind that the local administration has had to face," he said.

Soenarto Arief, chairman of the Banyumas legislative council's Commission B for economic affairs, called on both the local and central governments to give a positive response to the farmers' request.

"Both the central and local governments should share the farmers' suffering by waiving the obligation for them to pay interest on their loans," he said.

He admitted that his commission had received many requests for the government to adopt a special policy to allow the farmers to repay their loans at an appropriate time in the future.

"The legislative council has set up a team to check out the real situation on the ground. It will recommend that the local administration take over the farmers' debt problem should it be impossible for them to repay their debts," he said.