Govt to continue controversial social safety net program
Govt to continue controversial social safety net program
JAKARTA (JP): The government announced on Tuesday that it
would continue the controversial social safety net program, but
stressed that it would renegotiate with the World Bank and other
donors to revise the distribution methods and program targets.
Newly installed Coordinating Minister for People's Welfare and
Poverty Alleviation Basri Hasanuddin said the government would
launch a sustainable poverty eradication program to help at least
38 million people living below the poverty line throughout the
country.
Speaking to journalists after attending a Cabinet meeting on
people's welfare at Bina Graha presidential office, the minister
said the World Bank had expressed interest in resuming its loan
disbursement. However, Basri said the World Bank had asked the
government to revise the current program with a more sustainable
one.
"I just discussed (the issue) with the World Bank yesterday
(Monday) and they want the social safety net program to be
implemented as part of a more durable poverty elimination
program," said Basri, who has taken over the post held briefly by
Hamzah Haz.
The International Monetary Fund (IMF) and the World Bank
suspended disbursement of their loans following the Bank Bali
scandal and alleged fund abuse for money politics.
The postponement will affect the US$600 million in World Bank
soft loans to support the social safety net adjustments which had
been set in the budget at Rp 6 trillion for the current fiscal
year.
The government and the IMF are currently negotiating the
conditions of the aid disbursement in the next letter of intent,
which is expected to be signed next month.
Basri said former president B.J. Habibie earmarked Rp 5.6
trillion for the poverty alleviation program.
"Rp 119.6 billion fund is allocated for food security, for
education Rp 2 trillion, for the health sector Rp 1.7 billion and
for labor intensive projects Rp 1.8 trillion," Basri said.
He said the new social safety net program would be on target,
because the previous budget was allocated for 79 million poor
people.
According to the latest figure from the Central Bureau of
Statistics (BPS), the number of people living below the poverty
line has decreased to 38 million. (prb)