Compensation funds 'miss the target'
Compensation funds 'miss the target'
Tertiani ZB Simanjuntak, The Jakarta Post, Jakarta
A coalition of nongovernmental organizations has found that 75
percent of the state funds saved from lowering fuel subsidies
last year missed the target.
The Network for Community Empowerment (JKPM) announced on
Thursday that a survey it conducted between November and December
last year in 98 subdistricts in the provinces of North Sumatra,
Lampung, West and East Java, West Kalimantan, South and North
Sulawesi and East Nusa Tenggara revealed that the cheap rice
program was the only one to reach the lower income groups.
"This may have been caused by corruption, where the funds were
enjoyed not only by the poor, or because the programs had not yet
been completed because the government had difficulty in
disbursing the money," JKPM presidium chairman Erfan Maryono
said.
The government allocated Rp 2.2 trillion (US$21 billion) of
compensation funds to ease the burden of the country's 49.7
million poor families, following the fuel price hike.
Erfan said JPKM discovered, after interviewing around 2,000
families, that as of December, not all of the funds had been
disbursed to the villages, while the residents claimed to have
never heard of the programs. Worse still, the officials also knew
little about the objectives of the programs.
The survey found that the free medicines and vaccines had not
yet been distributed to the community health centers in the
villages.
Erfan said the programs should have reduced each poor family's
monthly expenditure by Rp 30,000 ($2.80).
"But they could only enjoy the cheap rice at an average price
of Rp 1,000 to Rp 1,200 per kilogram if the subsidy totaled Rp
7,500 each month," he said.
The government launched seven social programs after increasing
fuel prices by 30 percent in July 2001.
Rp 833.4 billion of the funds were allocated to provide
scholarships and renovate school buildings, Rp 534.1 billion for
free medicines and vaccines, Rp 279.9 billion to supply cheap
rice, Rp 216.4 billion for public transportation, Rp 174 billion
to provide clean water, Rp 105.8 billion to assist people in
coastal areas and the remaining Rp 56.3 billion to help small-
and medium-sized enterprises.
Smarting from the past experience, Erfan suggested that the
government stop similar programs this year if they failed to
reach the poor, and allow direct control by the public.
Erfan said JKPM would show its findings to the ministries
concerned in order to help them find a better mechanism, as the
government was intending to continue with the compensation fund
scheme.