Credit suspension affects PDR

MANADO, North Sulawesi: An executive of the People's Sovereignty Party (PDR) here acknowledged on Wednesday the central bank's suspension of a business credit scheme for farmers had forced it to revise its vote target in the upcoming polls.

However, the party chapter's secretary, Rizal Lumiu, was quick to deny the credit loans were only allocated to farmers who supported PDR.

"We just don't feel it is right to set a certain target of seats in the provincial legislature, as the situation is currently changeable," he told Antara, without elaborating further.

PDR is closely linked to Minister of Cooperatives and Small Enterprises Adi Sasono. The party is currently facing allegations of having practiced money politics by using social safety net programs.

Lumiu said suspension of the credit scheme affected the party's efforts to campaign.

The central bank, starting from May 17, suspended the farmer credit scheme worth Rp 3 trillion (US$375 million) for the 1999/2000 planting season. The credits should have been disbursed through village cooperatives centers (KUD) and non-KUD.

Antara reported that in previous planting seasons, North Sulawesi farmers received Rp 266 billion under the schemes channeled through state bank BRI and private Bank Danamon. The amount was Rp 71 billion higher than planned.