`Many used loans to buy consumers goods'
`Many used loans to buy consumers goods'
The city administration plans to increase the fund channeled
through its subdistricts for empowering poor people from a
previous Rp 250 million last year to Rp 500 million this year.
Some city residents have welcomed the program as it will help
improve the welfare of the underprivileged. However, they also
lamented the fact that many residents only used the fund for
buying consumer goods. The Jakarta Post discussed the issue with
some of them.
Nanik, 23, is an employee at a home industry in South Jakarta.
She lives in Radio Dalam, South Jakarta with her husband:
Actually I know of such a program. I support the idea as it
will help improve the lives of people in the lower-income bracket
or housewives who want to run their own businesses.
Unfortunately, I reckon that there are many people in my
neighborhood who applied for the loans and then spent them just
to buy consumer goods. They bought televisions or refrigerators
or other luxury goods.
They made use of the opportunity, I guess. I don't agree with
that practice, as it does not fulfill the objectives of the
program.
Worse still, they would make an excuse so as not to pay their
monthly installments. It means that they abused the loan.
But in a way, many Indonesians, ranging from the poor through
to those in the upper-income brackets, are notorious for their
ploys to avoid paying their dues. The country is full of liars.
Well, we can see that even small-scale vendors in the
traditional markets usually make an excuse to avoid paying even
just Rp 1,000 a day to the loan shark. It's hard to find reliable
people nowadays.
Popi, 29, is a housewife with one son. She resides in Pluit,
North Jakarta with her family.
I am aware of the program but I don't know precisely how to
avail of it. If possible I would like to apply for a soft loan to
run a garment business. Maybe Rp 2 million would be enough for
me. Formerly, I sold clothes and I was able to make a lot of
money. Unfortunately, I went bankrupt as I had to pay off a loan
I had taken with a loan shark.
At that time I borrowed Rp 1 million and I had to pay 20
percent interest per month. It caused me to suffer a huge loss in
my business.
I welcome the opportunity as it will really help empower the
poor. However, I regret that many have mismanaged the soft loans,
for things that are not advantageous. Generally speaking,
housewives have such tendencies.
I wish that the subdistrict officials responsible for the
money disbursement were honest and accountable. Perhaps, it would
be better to pay the installments into a bank account belonging
to the subdistrict in order to minimize irregularities.
I realize that such a program with a relatively large amount
of funds will be prone to fraudulent practices. But on the other
hand, I believe that those from the lower income bracket who
apply for the loans will have the goodwill to repay the loan in
installments regularly.
Utin, 32, is a housewife who resides in Gandul, South
Jakarta with her husband and two children:
I didn't know that there would be a fund disbursed to every
subdistrict here. But I welcome an empowerment program like that.
I think that soft loans are very useful for the poor people to
set up their own business. My neighbor even applied for the loan
to buy a motorcycle. He paid the monthly installment by working
as an ojek (motorcycle taxi) driver.
However, I don't have any intention of applying for the soft
loan. I have been traumatized by taking out loans. Up to this
moment I have almost given up paying the monthly installment on
my small house in Tangerang.
I want to quit the deal by selling the house but I have been
unsuccessful as nobody wants to buy the house. I am really fed up
with the installments as it burdens me a lot.
I used to run a garment business and I prefer to rely on my
own financial and personal connections rather than soft loans.
Basically, I will make money from my business if I have the
capital to run it. Otherwise, I prefer to be a housewife.
-- Leo Wahyudi S