Indonesian Political, Business & Finance News

Farmers shun cooperatives with corrupt executives

| Source: JP

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)

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