Productive use of funds urge

Productive use of funds urge

JAKARTA (JP): Deputy Governor for Economic and Development Affairs Tb. Rais stressed that the presidential aid for least- developed villages should be used for productive activities.

"The funds should be used as a capital for activities which can raise the standard of living of poor people and also pay back the aid," Rais told residents of the Kamal Muara subdistrict on Tuesday.

Rais said the success of the activities is very important.

"People who have not yet received the funds will get it once the current recipients have made profits from their activities and can pay back their share," he said.

Rais said the city administration has targeted three years for the eradication of poverty (by the end of 1997) and a target of 10 months for recipients to pay back their part of the funds.

The program is one of the latest in government efforts to fight poverty as it strives to raise the standard of living for the estimated 27 million people who are still living below the poverty line.

The government has identified 31.5 percent of all villages in Indonesia (20,633) as being eligible for these funds. Under the program, established by a presidential decree, each of the 20,633 villages identified, as being below the poverty line, will receive Rp 20 million ($9,500).

These villages are required to establish work groups designed to adopt a common concept for mutual development. It is hoped that the funds will be used as capital for small industries.

In Jakarta there are 11 subdistricts receiving the funds, including the Kamal Muara, Kapuk Muara and Penjaringan subdistricts.

In Kamal Muara Rp 36 million in aid has been given to 99 families and the funds are being used for various activities such as opening shops and beauty parlors. Recipients have already paid back Rp 6.3 million.

In Kapuk Muara there are 380 families who have received Rp 80 million in aid and Rp 12.7 million has been repaid. (yns)