Fuel subsidy yet to reach the poor
Fuel subsidy yet to reach the poor
Bambang Nurbianto,The Jakarta Post, Jakarta
Most of the Rp 84.61 billion (US$10 million) subsidy aimed to
help the poor, who have been affected severely by the increase in
fuel prices, has not reached them because of bureaucratic
problems, a report by the City Development Planning Board
(Bappeda) says.
The Bappeda report, a copy of which was made available on
Saturday to The Jakarta Post, showed that only small part of the
fund provided by the central government had been distributed to
the poor so far.
The report, for example, showed that no part of the Rp 32.49
billion of the fund allocated for educational programs, has been
distributed.
The same condition was also seen in the funding for health,
social welfare and job creation programs in the city.
The report said the fund had not been distributed because many
city offices had not prepared data on the targeted recipients.
The Rp 84.61 billion fund was part of a larger Rp 4.4 trillion
fund allocated to provinces to compensate for the fuel price
increase of up to 22 percent on Jan. 1 this year.
The announcement of the fuel price hike coincided with an
average six percent increase in electricity tariffs and an
average 15 percent rise in telephone rates, causing massive
nationwide demonstrations. The government backed down on the
utility hikes as a result, but maintained the fuel price
increase.
The fuel subsidy was a response to critics, who said that the
fuel hike had mostly burdened the poor, who were still suffering
from the impacts of the 1997 economic crisis.
According to the Bappeda report, 40 percent of the 8.3
million-strong population of Jakarta are poor, and should be
targeted by the subsidy.
City administration officials, however, made conflicting
statements about the fund. Many were also reluctant to speak of
the matter, saying that it was not their responsibility.
"I do not know how the money was used, as it is not part of
our responsibility," said head of the City Community Empowerment
Board (BPM) Rohana Manggala, the official most responsible for
the poverty eradication program.
A number of other city officials, whose names were forwarded
as those able to explain the issue -- including those with
Bappeda and the city logistics and distribution office -- also
gave the same answer.
A staff at Bappeda stressed that the fuel subsidy was being
coordinated by the BPM.
"As far as I know, the matter is being handled by BPM," said a
Bappeda staff, who spoke on condition of anonymity, but refused
to elaborate further.
Spokeswoman of the City Health Agency Evy Zelfino, however,
said the subsidy had been integrated with another from the city
budget.
"The subsidy was used for health programs for the poor," Evy
said on Saturday, without mentioning the amount of the fund or
other details.
The Bappeda report says that the fuel subsidy is to be used
for a number of programs including those for food/rice, health,
social welfare, education, job creation, clean water facilities, small
businesses and cooperatives, and empowerment of coastal
communities.
The report shows that only a few of the programs have been
initiated, including the food program (24.57 percent), clean
water facilities (North Jakarta and East Jakarta only), and
empowerment of coastal communities (4.85 percent).
Allocation of fuel subsidy for city programs
(in Rp)
1. Food/rice 7.11 billion
2. Health 24.88 billion
3. Social welfare 7.65 billion
4. Education 32.49 billion
5. Job creation 2.70 billion
6. Clean water facility 5.71 billion
7. Aid for small business
and cooperatives 3.07 billion
8. Empowerment of coastal
community 0.97 billion
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Total 84.61 billion (sic)
Source: Bappeda Evaluation of Application of Fuel Subsidy
Compensation Program