Govt to distribute 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 Jakarta Bureau of Statistics, about 300,000 families, or more than one million people, in Jakarta were officially classified as poor. Most of these people did not possess a Jakarta ID card. (figures to be rechecked)

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.