Wed, 08 Jun 1994

Farmers shun cooperatives with corrupt executives

JAKARTA (JP): Many farmers refuse to join Village Cooperatives Units (KUD) because most of their executives, particularly those appointed by the government, are corrupt and neglect farmers' needs, executives of the Indonesian Farmer Association (HKTI) say.

"Based on our observations, KUDs led by government-appointed chairmen are in bad condition and have failed to carry out their intended purpose," Oyon Tahyan, a vice chairman of HKTI, said in a hearing with Commission IV of the House of Representative (DPR) here yesterday.

He said the government, therefore, should not intervene in the appointments of KUD executives.

Oyon said KUDs with democratically elected executives are more successful in carrying out their programs because those executives understand more about the needs of members, including greater know-how in obtaining loans and fertilizer.

"Farmers told me that their monthly contributions to KUDs have also vanished," he added.

HKTI's chairman, Ismail, said the government apparently has not made enough efforts to help improve the welfare of farmers.

Ismail, a retired general who is a former governor of Central Java, explained that farmers still face difficulties in obtaining loans from banks to support their farming activities.

He acknowledged that the government does annually increase the floor prices of rice sold to the National Logistic Agency (Bulog) but it also regularly reduces subsidies for the purchases of fertilizer and pesticides. (yns)