Tue, 04 Oct 2005

'How did the govt come up with the figure Rp 100,000?'

The government raised fuel prices on Oct. 1 after putting into place a benefit scheme, which pays low-income families Rp 100,000 a month to alleviate the extra financial burden they must bear. The Jakarta Post talked to two people about how the government could ensure that the money would go to those entitled to it.

Ashar Makmur, 39, is a civil servant in the Directorate of Air Transportation at the Ministry of Transportation. He lives with his wife and children in Tanjung Barat, Jagakarsa, South Jakarta:

I don't believe the cash assistance will help. I think it is a stupid way to help the poor. The government should have known better the characteristics of most Indonesians. They will spend up their money the day they get it. So, what's the use?

I propose that the money be used to make education in public schools and health services in state-own hospitals totally free. Then all the poor will have to take care of is food. I think this would very much ease their burden as I know that both education and health services cost them a lot.

Although many would argue that wealthy people would also benefit from free health services, I believe that only a small number of rich people actually use public schools and hospitals.

Yulian Saputra, 35, is an insurance agent. He lives with his wife and children in Manggarai, South Jakarta:

I am still confused about how the government determined which households were entitled to the cash assistance. I think all of us have become poorer because of the sharp increases of fuel prices.

I believe that many families in my neighborhood unit are entitled to get the assistance but only one family is actually registered. I am afraid that officials from the subdistrict office have already embezzled the money as I believe many more families should also get assistance.

I am also confused about how the government determined Rp 100,000 was an adequate compensation level. How did they come to this number? I think it is far from enough, considering that kerosene prices have tripled to more Rp 3,000 a liter now, while each household needs more than two liters a day just for cooking purposes.

-- The Jakarta Post