Erna's office to launch fuel-recovery program

JAKARTA (JP): The Ministry of Settlement and Regional Infrastructure is set to launch a massive three-month recovery program, involving 4,895 villages in 14 provinces outside Java, using funds from the fuel subsidy worth some Rp 300 billion.

According to minister Erna Witoelar, the program, dubbed the community empowerment program, is designed to assist destitute people and build decent infrastructures for their villages.

The funds are from the remaining budgeted but unused fuel subsidy totaling around Rp 800 billion and will be distributed to related ministries for alleviation of poverty, Erna explained in a media briefing on Friday afternoon.

Two related ministries are the Ministry of Home Affairs and Regional Autonomy and the State Ministry for Cooperatives and Small/Medium Enterprises.

"With the hike in fuel price by up to 12 percent scheduled for this fiscal year, there will be a drop in fuel subsidy from Rp 44 trillion to Rp 43.2 trillion.

"So the government plans to use the unspent subsidy to work on poverty eradication, and my office expects to receive around Rp 300 billion that will be officially set in the coordination meeting on economic affairs on Monday," Erna said.

The massive recovery project, slated to start from October to December this year, will involve 4,895 villages, 255 districts and 47 regencies in 14 provinces outside Java.

"We will give priority to eastern Indonesia region. Every village is estimated to receive between Rp 50 million to Rp 96 million. Each district, however, will get an amount between Rp 870 million and Rp 1.6 billion," the ministry staffer Rubini Yusuf, said.

In a bid to avoid possible fraud or malfeasance, the proposals for building or rehabilitating the village would come from the people from community welfare organizations, Erna said.

"Each village community will decide for itself. Whether they need road repairs, a bridge, port, clean water, schools, community health center or dam, the people are the ones who know their needs.

"The government only provides the funds and joint supervision with local communities at every level of administration," she said.

The three-month program is expected to absorb some 14,685,000 man days/village, she said.

"The people will also decide the wages, usually based on the minimum wage in each region. It also depends on the kind of project, repair or new construction," she said.

Erna also reiterated that the scheme would run effectively. "We are in no hurry to disburse the funds. If the funds are not completely used in three months, we will allot the unused monies for the next fiscal year. Now is not the time to waste money," she added. (edt)