Mon, 17 Oct 2005

PAN asks govt to stop cash aid

JAKARTA: The National Mandate Party (PAN) has suggested that the government stop paying out cash assistance to the poor after six months, calling the scheme "not educational".

"I have talked to President Susilo Bambang Yudhoyono, and in principle he agreed that the scheme was a temporary measure," PAN leader Soetrisno Bachir said on Sunday.

The government is giving Rp 100,000 (US$10) in cash per month to each of 15.5 million poor families to alleviate the impact of fuel price hikes on poor people. The scheme will last for one year.

Soetrisno, who is a businessman, said the aid should have been channeled to the real sector to help it create jobs for people. "But I understand the government's policy is 'trauma therapy' following the massive increase in fuel prices," he added. -- Antara