Rp 66 billion loans not disbursed, Sutiyoso shocked

Ahmad Junaidi, The Jakarta Post, Jakarta

More than Rp 66 billion in loans are available for low-income people to improve their economic activities. But two weeks after the scheme was launched, the money has not yet been disbursed due to unclear information on how to apply for it.

City Governor Sutiyoso was surprised on Tuesday to learn that the fund for the Subdistrict Community Empowerment Program (PPMK) had not been disbursed to the subdistricts.

During a meeting with Sutiyoso at the offices of the Central Jakarta Mayoralty, almost all subdistrict councils said they had not received the fund as they did not know the procedure to apply for it.

The deputy governor for People's Welfare, Djailani, quickly explained that the disbursement of the money, a total of Rp 250 million to be lent to each of the city's 267 subdistricts, was delayed due to technical matters.

Djailani said none of the 267 councils had forwarded a proposal to obtain the soft loan, which carries a monthly interest rate of 1 percent and should be repaid within two years.

To qualify for the money, the councils must have an account at city-owned Bank DKI.

But only 25 councils have a bank account.

The city officials earlier claimed that all subdistricts, except four in Kepulauan Seribu (the Thousand Islands) regency, had received the loan.

At Tuesday's meeting, subdistrict council members complained about the council's operational fee of Rp 3.7 million, which is lower than the Rp 22 million fee for non-governmental organizations appointed to monitor the program.

The city administration said that the council members would receive only Rp 3.7 million since they were paid a monthly salary of Rp 750,000.

A member of North Petojo subdistrict council, Tohir, admitted that the council had not made a proposal to apply for the loan out of fear that the loan could not be returned.

"If the loan cannot be returned, who will be held responsible? We are afraid to take responsibility for it," Tohir said.

Many subdistrict council members questioned Sutiyoso's earlier statement that the debtors did not need to return the loan if they had a strong reason stopping them, such as if their stall was destroyed by fire.

The loan especially aims at helping residents whose economic activities were affected by the recent floods.

Separately, Marni, a food vendor in the Slipi area of West Jakarta, said that she learned about the program from the newspapers. None of the subdistrict officials or council members had offered it to residents, she said.

"If there is such a program, I want to enroll in it to develop my business. But how do I get the loan?" the mother of three children asked.

Last year, the administration allocated Rp 50 billion in a similar program for 25 poor subdistricts. Only half of the fund was used by the residents.

Residents complained that the fund was lent to relatives of subdistrict officials or was used to finance construction projects in the local infrastructure.