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)