IDT program to continue with revision
IDT program to continue with revision
JAKARTA (JP): The government-sponsored Presidential Aid for
Least-Developed Villages (IDT) poverty alleviation program will
continue albeit with some revision, an official said yesterday.
Mubyarto, assistant to State Minister of National Development
Planning Ginandjar Kartasasmita, told a House of Representatives
hearing that, although the government would no longer send funds
to least-developed villages, the development of infrastructure in
these villages would continue.
Legislators had questioned Mubyarto about the future of the
three-year-old program which ends this year.
Launched in April 1994, the program involves 28,223 poor
villages. Each village has received Rp 60 million (US$25,000)
paid in stages over three fiscal years.
Mubyarto said the government would extend infrastructure
development aid to boost economic activity in the villages. He
said poor infrastructure was the reason that the IDT program had
failed in some villages.
"Irian Jaya is one bad example of the IDT project. Despite its
(wealth) in economic resources, (the province) has geographical
disadvantages. The province is short of roads and must rely on
air transportation," he said.
Another senior official at the ministry, Herman Haeruman, said
that only 37.4 percent of the villages had enjoyed infrastructure
development aid.
He said infrastructure development programs were expected to
be completed in 2002 or 2003 in the remaining villages.
The government has provided Rp 480 billion, mostly from
foreign loans, this fiscal year for the infrastructure
development program.
Mubyarto said the IDT program would be revised to focus on
raising the incomes of the 123,000 consultants, who are employed
to help villagers make efficient use of their funding.
He suggested the government provide a Rp 460 billion subsidy
for five years to help every village group run businesses under
the consultants' guidance.
"After five years it is expected that every group will handle
their business properly and pay their consultants 12.5 percent of
turnover," Mubyarto said.
He said the government would not evaluate the IDT program in
detail because of the many villages involved.
"The program is successful in most of the villages," he said.
He predicted that by the end of 2004, the number of
Indonesians living below the poverty line would drop to only
about six million.
President Soeharto said earlier this year, while delivering
the state budget for the 1997/1998 fiscal year, that the number
of poor had fallen to 22 million in 1996.
The government has introduced another poverty alleviation
program, involving subsidized loans to poor families. The new
program is financed by the Dana Sejahtera Mandiri Foundation,
headed by President Soeharto.
The foundation raises its funds from donations from the
country's wealthy. fund raising is based on a presidential decree
ordering firms and individuals with annual after-tax earnings of
more than Rp 100 million (US$42,000) to donate 2 percent of their
incomes to the program. (amd)