Indonesian Political, Business & Finance News

More funding urged for social safety net

| Source: JP

More funding urged for social safety net

JAKARTA (JP): City councilors urged the central government on
Monday to increase fund allocations for the capital's social
safety net program to allow it to reach more of the jobless and
needy students.

Lukman F. Mokoginta from Commission D for development affairs
and Nitra Arsyad from Commission E for social welfare said the Rp
77.2 billion (US$9.65 million) allocated by the administration to
finance labor intensive projects was too small.

Current labor intensive projects manage to absorb only 70,000
jobless in the city, a fraction of the estimated 825,900
unemployed, they said.

The councilors made the remarks at a plenary session when
Governor Sutiyoso unveiled the realization of the first six
months of the 1998/1999 city budget.

The fund for labor intensive projects was taken from the Rp
260 billion set aside from the budget for the safety net program.

Another Rp 17 billion was used for the construction of
Penggilingan flyover in East Jakarta, Rp 86.4 billion for the
flood prevention program and Rp 80 billion to be granted as
scholarships to 54,657 students, said Sutiyoso.

Regarding the overall adjustment, Sutiyoso said the city
budget had been cut to Rp 1.75 trillion from Rp 2.79 trillion
formerly.

Lukman said it was feared the rising number of jobless could
be a potential trigger factor in generating social unrest.

"This is a capital which is regarded as the barometer for
national stability. Anything that occurs here can spread to other
provinces in Indonesia," he said.

Nitra said the number of students forced to drop out of school
due to a lack of funds could well be higher than those registered
to receive aid through the safety net program.

"The government would face a delay in completing its campaign
on the basic education program," said Nitra, referring to the
government's compulsory nine-year basic education campaign for
school-age children.

Data at the city office of the Ministry of Education and
Culture shows that about 9,000 out of one million students of
state and private elementary to senior high schools had been
forced to drop out due to the monetary crisis as of October.

Although the councilors failed to explain how the central
government should increase funds for the safety net program, they
insisted the city authorities could do their best to utilize the
allocated funds.

"The only thing we could do is to empower the city officials
to avoid the misuse and mishandling of the funds," Nitra said.
(ivy)

View JSON | Print