Credit suspension affects PDR

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.