Integrated antipoverty program starts in Sleman
Sri Wahyuni, The Jakarta Post, Sleman, Yogyakarta
Minister of Settlements and Regional Infrastructure Soenarno launched the Integrated Poverty Eradication (Paket) program here on Friday in a bid to increase partnerships between local governments, target communities and groups of concerned people.
The program is part of the Urban Poverty Eradication Program (P2KP), introduced previously by the central government.
Soenarno said that apart from Sleman in Yogyakarta, the Paket program would also be introduced in the form of pilot projects in three other regencies and municipalities -- Pemalang in Central Java, Malang in East Java, and Cirebon in West Java.
The four areas were selected based on their success in carrying out the P2KP program, he said at a ceremony to mark the launching of the program at the official residence of Sleman Regent Ibnu Subiyanto.
The event was attended by Coordinating Minister for People's Welfare Jusuf Kalla.
"We plan to expand the Paket program to 26 other municipalities and regencies across the country next year," Soenarno said.
Under the program, the four municipalities and regencies will each receive Rp 1.5 billion (US$178,571) this year. They will then each be given an additional Rp 2 billion in 2004 and Rp 2.5 billion in 2005 if they successfully manage their side of the program.
Soenarno said the government had allocated some Rp 600 billion to fund the second phase of the P2KP program, which was launched in 2002. The first phase of the program started in 1999 and was funded by loans from the World Bank.
Part of the funds would be used for the construction of infrastructure, such as roads and irrigation facilities, improving access to financial institutions, and the building of about one million low-cost homes, Soenarno said.
"But we have yet to decide on the size of the funding to be allocated to each of the projects, including the construction of the low-cost homes," he added.
The minister explained that the funds allocated for the target groups should be used for the purpose of kick starting small businesses.
He said that since being introduced, the P2KP program had provided low-income members of the community with inspiration.
A study conducted by the World Bank, he said, revealed that the P2KP was considered one of the most innovative poverty eradication programs in the world.
Soenarno said the government hoped that through the newly launched Paket program, the P2KP would become more integrated and focused in the future by involving the active participation of all the stakeholders, including local governments, the target groups and concerned members of society.
The Sleman regent said the P2KP had significantly increased popular participation in the development process in his regency.
Last year's grant of some Rp 895 million provided through the program was able to encourage financial participation by Sleman people to the tune of Rp 6 billion, or some seven times the amount of the grant, Ibnu added.
"The same thing is happening now in 2003. From the proposals we have received from the community, we can see that the value of the public's financial participation could reach up to Rp 4 billion, although the money given to us under the Paket program only amounted to some Rp 1.5 billion," he said.