More funds to be disbursed for community programs
Bambang Nurbianto, The Jakarta Post, Jakarta
The city administration could increase its funding of the Subdistrict Community Empowerment Program (PPMK), despite allegations of corruption and ineffectiveness.
Community Empowerment Board (BPM) chairwoman Rohana Manggala said that under the program, all subdistricts were entitled to unlimited funds if they put forward feasible proposals.
The PPMK is a soft-loan program, which does not require collateral or charge interest, using city money to allow residents to start small businesses.
It began as a pilot program involving 25 subdistricts in 2001, and expanded to 242 of the 267 subdistricts in Jakarta in 2002, with each receiving Rp 250 million. This year, the city doubled the funds to Rp 500 million.
"Next year the amount could be more (or less), depending on the proposals from each subdistrict," Rohana said after a meeting with Vice Governor Fauzi Bowo on Monday.
She said the city administration had nominated 12 subdistricts as part of a pilot program, starting in June, to determine if the program would be implemented fully next year.
The subdistricts include Kelapa Dua Wetan and Makassar subdistricts in East Jakarta; Bendungan Hilir in Central Jakarta; Kedoya Utara and Cengkareng Barat in West Jakarta; Bukit Duri and Srengseng Sawah in South Jakarta; Semper Barat and Penjaringan in North Jakarta; and Pulau Panggang in the Thousand Islands regency.
Rohana said the administration had appointed the Bogor Agricultural Institute as consultant for the pilot.
The PPMK is plagued by corruption. A number of activists have also criticized the role played by the subdistrict councils (Dekel), which originally had a controlling function in the subdistricts.
Rohana admitted that at least six cases of corruption involving Rp 900 million of PPMK funds were detected last year.
The corruption allegedly occurred in five subdistricts in Central Jakarta, namely Serdang, Karet Tengsin, Paseban and Bungur subdistricts; and one in Kelapa Dua subdistrict, West Jakarta.
Rohana said the money for this year's program could be disbursed next month with a condition that bad debt from the previous year was less than 30 percent of the total funds issued.
"If bad debt reaches 30 percent we will delay the disbursement until the debts are returned," Rohana said, adding that total bad debt of the Rp 60 billion program had reached about Rp 4 billion.
Asked if management of the funds would still be controlled by Dekel next year, Rohana said the city administration was still undecided. However, he said that this year the subdistrict heads would be involved in supervising the disbursement of the funds by Dekel.