Govt set to disburse compensation funds
Tertiani ZB Simanjuntak, The Jakarta Post, Jakarta
In a bid to restore public faith after the utility price increases, the government decided on Thursday to speed up the disbursement of money to the poor.
Coordinating Minister for People's Welfare Jusuf Kalla said that the Ministry of Finance was ready to disburse a total of Rp 4.43 trillion (around US$497 million) to finance the government's programs targeting the poor.
"The program will in fact start tomorrow (Friday) with the distribution of subsidized rice in Jakarta," he told a press conference after a ministerial meeting at his office.
He was accompanied by Minister of Home Affairs Hari Sabarno, and Minister of Regional Infrastructure and Resettlement Sunarno.
Last year, the government disbursed money, drawn from the reduced fuel subsidies, in April through June.
The program to compensate for fuel subsidy reductions (PKS- BBM) aims to reduce the impact of subsidy reductions on low- income groups.
Kalla said that this year the government would expand the coverage of the programs, from the distribution of cheap rice to the provision of funds for the development of small businesses.
The programs would be administered by 12 state institutions.
As with last year, the National Development Planning Board (Bappenas), the Ministry of Finance and Kalla's office would only set up the programs' blueprint, while the funds would be disbursed directly to the administering institutions.
The institutions would then task their regional offices with carrying out the programs directly and distribute the necessary staples or money to more than 30 million poor people.
The Development Finance Comptroller (BPKP) would audit the use of the funds twice a year.
Kalla said that in addition, many universities across the country would also be involved in monitoring whether the programs were on target.
However, some of the money went to the wrong targets, according to a BPKP report. BPKP revealed last September impropriety of more than Rp 22 billion, or less than 1 percent of the total Rp 2.85 trillion in compensation funds during the first semester. The audit result of the second semester would be revealed in March.
According to Kalla, the government had implemented administrative sanctions against those responsible.
"We have told BPKP to next time report the names of the corrupt officials to the police directly," he claimed.