How leakages occur in distribution of rice for poor

How leakages occur in distribution of rice for poor

The Jakarta Post, Jakarta

Possible 'leakages' in the distribution of fuel subsidy
compensation funds for the poor can occur in any of the appointed
administering institutions, even an agency that is meant to adopt
one of the most efficient distribution methods.

The State Logistics Agency (Bulog), responsible for
distributing rice for the poor, known as raskin by its Indonesian
acronym, is presumed to be one of the most efficient institutions
in administering the program, for the agency can distribute rice
directly to recipients, as it is not attached to any department
or local administration.

Nevertheless, loopholes still exist in the mechanism, which
are open to abuse.

First of all, a leakage can occur in the purchase of the rice.

Bulog said that it purchased rice from farmers at a price of
Rp 2,800 (30 U.S. cents) per kilogram (kg) last year, and the
agency currently held some 1.5 million tons of this rice for the
raskin program. Bulog would then sell the rice at Rp 1,000 per
kilogram to the poor.

The difference between the purchase and sale price would be
covered by the compensation fund. On top of that, Bulog would
still charge storage and handling fees, also covered by the fund.

This year, Bulog will receive Rp 500 billion (US$55.5 million)
in compensation funds, the same as last year.

On top of that, said Bulog spokesman Suhardo, the agency was
still entitled to Rp 4.8 trillion of the social safety net fund,
also to provide cheap rice for the poor.

With that amount in funds, Bulog plans to distribute a total
2.35 million tons of rice to about 9.2 million poor families,
compared with 9.7 million people last year.

The next problem in the distribution process is the selection
of recipients.

Suhardo said Bulog had collected data on poor families from
the National Family Planning Coordinating Board (BKKBN).

Based on the data, village heads would distribute coupons to
poor families and they would be entitled to purchase 20 kg of
rice per month.

Suhardo said the distribution of cheap rice this year would be
the same as for last year -- namely the agency would send the
rice from its depots to village heads or depots, either of which
would then be responsible for distributing the rice to the poor.

Fears are growing that the cheap rice will go to people not
entitled to receive it or to people close to village heads.

Nevertheless, monitoring teams are supposed to be established,
comprising village community leaders, to ensure that the rice
reaches the targeted people, the poor -- be they relatives of
village heads or not.

In some cases, however, the price of the cheap rice could be
higher than the government-set Rp 1,000 per kg, as some villages
charged a handling fee to recipients of up to Rp 200 per kg.

Suhardo justified this price increase, as the costs of
transportation from village depots to recipients would be met
from respective local administration budgets.

Last, but not least, is accountability of the distribution.
Bulog would be responsible for the rice sent to village depots,
but from there onward, accountability reports would not normally
be made.