Fuel subsidy savings piped to health office

JAKARTA (JP): The Minister of Health and Social Welfare Achmad Suyudi revealed on Wednesday that the government had earmarked some Rp 534.1 billion from the reduced fuel subsidy to his ministry for a six-month period.

He said that the funds would cover various priority programs, including child vaccinations, medical services for the underprivileged and the providing of affordable medicines.

"We'll announce further details of the funds usage on Thursday," he told reporters after inducting 13 top-echelon officials at his office.

"Without the additional subsidy, the price of generic medicines may rise 20 to 40 percent as a result of the increased cost of raw materials. But, as long as the subsidy can cover the hike, there will be no increase in prices," he added.

The government has increased fuel prices by 30 percent to reduce its fuel subsidy.

The government also plans to increase electricity and phone rates for similar reasons and to allocate the savings on the subsidy for social welfare programs.

However, the hike had raised nation-wide protests as it was followed by an increase in public transportation fares and other consumer goods, including basic food stuffs.

Suyudi also added that the office would still go on with the planned social and health safety net program which began this month and would continue until July 2002.

The safety net program with a budget of Rp 456 billion is focused on providing basic medical services, food supplements, maternal health care, eradicating communicable diseases and the improvement of the public health centers.

"But the scheme may can only reach a fourth of the 250,000 public's health centers throughout the country," Suyudi added.

During the induction ceremony, Suyudi also announced that for reasons of efficiency, the ministry had trimmed personnel resulting in a reduction of high-ranking officials from 1,273 to only 944.

He said that the newly installed officials had been tightly screened through fit and proper tests.

"Our task in the future will be more complex, therefore the new officials have to improve communication and coordination with other related departments," he said, addressing the 13 officials.(bby)