Govt pledges funds for poor free from corruption

Rendi A. Witular, The Jakarta Post, Jakarta

Public concern that the Rp 17.8 trillion low-income assistance fund from the reduction in the fuel subsidy will miss the target -- which is some 16 percent of Indonesia's 220 million population -- has prompted the government to make an all-out effort to make sure that the money goes to the needy.

Among the efforts are the setting up of a special team tasked with monitoring the channeling of the funds as well as allocating a Rp 132 billion (US$14.27 million) special fund for the "safeguarding" process.

"The safeguarding fund will be taken from the funds for the poor. A special team consisting of officials from various state agencies and non-governmental organizations (NGOs) will be tasked with supervising the channeling of the assistance funds," State Minister of National Development Planning Sri Mulyani Indrawati said late on Monday after the announcement on the fuel price increase.

The government announced an average of 29 percent increase in fuel prices, arguing that the move was for the benefit of the nation as it would lead to greater funding allocations for welfare programs, encourage more efficient fuel usage and prevent fuel smuggling.

The safeguarding efforts will include planning coordination, monitoring, evaluation, supervision, auditing and the securing of the low-income assistance funds.

"The government will task the Development Finance Comptroller (BPKP) with auditing the low-income assistance funds each year to track down any irregularities in the use of the funds," she said.

According to Mulyani, the success of the government in channeling the funds could be measured at the end of the year based on three categories -- target accuracy, the amount of funds spent and time accuracy.

The assessment on whether the funds had or had not reached the target will be conducted by the comptroller, NGOs and a private auditor, she said.

The government has promised to allocate Rp 10.5 trillion of the Rp 20.3 trillion saved by cutting the fuel subsidy to finance a number of programs targeted directly at the poor.

The Rp 10.5 trillion will be added to the Rp 7.3 trillion already earmarked in the 2005 state budget for programs aimed at assisting low-income families and individuals.

The majority of the funds will go toward a scholarship program, the purchase of subsidized rice for the poor, rural infrastructure projects and health programs.

However, based on past experience, the low-income assistance funds could become a target of corruption, particularly by local administrations.

For instance, a coalition of NGOs has found that 75 percent of the state funds saved from lowering fuel subsidies in 2001 have missed the target, mostly due to corruption.

The government allocated Rp 2.2 trillion in low-income assistance funds following a rise in fuel prices in 2001.

Recently, the comptroller also reported misuses of the 2001 assistance funds in 2003, worth Rp 21.56 billion or 1.48 percent of the audit samples worth Rp 1.46 trillion.

The House of Representatives, however, later called into question the comptroller's report as the figures mentioned were too low compared to those arrived at by the NGOs.