Indonesian Political, Business & Finance News

City in the dark over subsidy for poor residents

| Source: JP

City in the dark over subsidy for poor residents

Damar Harsanto, The Jakarta Post, Jakarta

More than two months after the controversial 29 percent fuel
price hike, the poor have not gained any benefit from the
slashing of the fuel subsidy as the Jakarta administration is
still unsure about the distribution of the compensation fund.

The current ineptitude is in stark contrast to the
government's bold advertisements placed in the mass media stating
that it would immediately give the fund to the needy, in an
apparent move to fend off mounting public opposition to the fuel
hike.

"I have tried my best to obtain necessary information about
the detailed implementation of the subsidy from relevant
governmental institutions, but to no avail. Progress is so slow,"
head of people's welfare division with the City Development
Planning Board (Bappeda) Tuty Kusumawaty told The Jakarta Post.

Tuty's division is the institution in charge of coordinating
all sectors for the fund given by the central government in
compensation for the fuel price increase.

"We have also asked to the National Development Planning
Board (Bappenas) about the detailed allocation for the subsidy,
but, we have not received it until now," she complained.

In a Bappeda document outlining guidelines for the fund
distribution made available to the Post, of the five sectors
earmarked for the fund use, only data on the supply of subsidized
rice for the poor was available, or about 28,278 tons for this
year.

For the four other sectors, namely health services, social
welfare, education, and measures to contain unemployment, neither
the detailed allocation was mentioned, nor the mechanism for its
distribution.

Similarly, Jakarta Health Agency spokesperson Zelvyno could
not explain the health scheme to be provided for poor residents.

"What I know is that Jakarta has a quota of 277,134 recipients
for subsidized health services from the central government this
year. The recipients are mainly those from the low-income bracket
who are not registered as Jakarta residents," Zelvyno said.

The mechanism of the subsidy, however, is implemented by state
insurance firm PT Askes, she added.

According to her, the agency only manages the subsidy for
registered residents of Jakarta who ask for cheaper health
services.

The administration allocated Rp 100 billion from the city
budget this year for health services for Jakartans in the low-
income bracket.

The only progress the administration has made so far is that
it could produce basic data about the number of poor residents in
the city who will be the target recipients in the 2005 subsidy.

The Jakarta Central Bureau of Statistics (BPS Jakarta) has
data on 498,689 poor residents, while the Jakarta Family Planning
Board (BKKB Jakarta) reports 847,873.

"In line with the guideline from the central government, we
will use the data provided by the BKKB Jakarta as the main
reference in the implementation of the fund," said Tuty.

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