'I'm not sure the loans will be disbursed fairly'

'I'm not sure the loans will be disbursed fairly'

Last year, each of the city's 287 subdistricts received Rp 250
million for a subdistrict empowerment program (PPMK). Despite
reports about irregularities in the disbursement of the fund,
which was managed by the subdistrict council, the administration
plans to double the amount this year. The Jakarta Post talked to
some residents about the program.

Warni, (not her real name), 50, is a sidewalk vendor selling
soft drinks in Petamburan, Central Jakarta. She has four children
and lives nearby with her husband:

My husband and I once received a loan offered by the
subdistrict administration. It was my husband who applied for it
through a committee established by the subdistrict. After waiting
more than seven months and going through complicated procedures,
the loan was granted. We got about Rp 3 million to develop our
fledgling food stall.

My husband and I managed to pay monthly installments of Rp
300,000 for one year, despite the hardship of getting our
business off the ground.

After we had paid back nearly Rp 1.5 million we found out that
the subdistrict official who collected the cash had taken the
money.

From then on, I decided to stop making monthly payments
because it would make no difference paying off a corrupt
official. Most of our fellow vendors also did the same thing.
Nobody has asked for the rest of the loan so far.

Besides, not all of the other vendors have used the loan for
their businesses. Many of them used the money for other things.

I think that loans to empower people are very useful to
empower low-income earners like me, provided that the money is
well-managed. Unfortunately, not all of us are aware of the
benefits it brings.

I agree with the city administration's idea to grant more
loans for each subdistrict. I'm sure that vendors who receive a
loan will keep their promise to make installments regularly.

However, it is important to first empower the subdistrict
officials so that they have better morals and set a good example
for people to follow.

Rasudi, 53, sells fried snacks in Kayu Jati market, East
Jakarta. He lives in Rawamangun Tegalan, East Jakarta, with his
wife and four children:

I haven't heard about loans to help low-income earners like
me. Does that mean every resident has the right to apply for a
loan?

If an ordinary vendor like myself was entitled to apply for
one, I would certainly go for it.

I think any vendor would be very happy to know about an
empowerment fund like that because we realize that we are just
selling fried snacks and we lack the adequate capital to develop
our business further.

If my loan was approved, I would be able to branch out in my
business, and not just sell fried snacks but perhaps rice as
well. It would be far more profitable.

I would agree to pay back the loan in monthly installments as
set out in the agreement. That would be our responsibility as
borrowers, even though we know that it would not be that easy to
earn money from our business.

Anyway, thanks for letting me know about the loan. I will try
to find out more so I can ask the subdistrict administration
officials about the chances of getting one.

Dirjo, 32, is a vendor selling chicken at Ampera market, East
Jakarta. He lives in Kampung Ambon, East Jakarta with his wife
and daughter:

It's a good idea that the subdistrict administration is
extending loans to help empower those who fall within the low-
income bracket.

However, I'm not interested in applying for one. The fact that
many government officials, including those in the subdistrict,
are corrupt makes me feel jaded about any government policy.

I'm not sure the loans would be disbursed fairly to all
residents in dire need of money. It seems the government never
sides with those who earn a low income.

The residents in my neighborhood once tried to improve the
infrastructure there, but they realized that the subdistrict
administration never cared about the condition of it.

I'm afraid that any funds given by the government will not end
up in the hands of low-income residents to help them run their
business due to the corrupt mentality of officials at the lower
level.

By keeping that fact in mind, I would rather not rely on a
loan from the subdistrict administration. I have to rely on my
own finances because I have heard from others that the procedures
are quite complicated.

-- Leo Wahyudi S