Govt set to parcel out cheap rice

Govt set to parcel out cheap rice

Tertiani ZB Simanjuntak, The Jakarta Post, Jakarta

The government plans to distribute subsidized rice on Friday in
four of Jakarta's five municipalities, as part of a program to
offset recent fuel price and utility charge increases.

Coordinating Minister for People's Welfare Yusuf Kalla said on
Thursday the Jakarta Logistics Depot would distribute tons of
rice to municipal offices in Central Jakarta, West Jakarta, East
Jakarta and North Jakarta.

"Each of the municipalities will then distribute the rice to
the subdistricts where the needy reside," he said.

He said South Jakarta did not require additional subsidized
rice because a regular program funded by the state budget covered
the municipality's needs.

Poor residents in possession of a family card or an identity
card issued by the Jakarta administration will be allowed to
purchased the subsidized rice for Rp 1,000 (about 11 US cents)
per kilogram, much cheaper than the usual market price of between
Rp 2,600 and Rp 3,500 per kilogram.

Those without such a proper identity card, however, will be
unable to benefit from the program.

According to data gathered in 2002 by the Urban Poor
Consortium about 500,000 people, in Jakarta were classified as
poor. Most of these people did not possess a Jakarta ID card.

The subsidized rice program, similar to one last year, is
being funded by the reductions in the government's fuel,
telephone and electricity subsidies. The government is using Rp
4.43 trillion from the reduced subsidies to ease the burden on
the poor from the resulting price hikes.

However, activists say many similar programs last year failed
to reach the correct people. They are demanding a thorough
evaluation of these programs.