Integrated antipoverty program starts in Sleman

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.