Safety net program

Safety net program

From Merdeka

We, Indonesian non-governmental organizations grouped in INFID, would like to declare our stance on the implementation of the social safety net program.

We would like to remind the government that the funds for the program mostly come from loans which must be repaid and managed in a manner that accurately hits the target and are accountable.

We feel the credibility of the Indonesian government is at stake in the implementation of this program. If the implementation of the program proves not to be transparent and accountable, and if it fails to reach its stated goal, it is very likely that Indonesia will find it difficult to earn the trust of and receive donations from donor countries in the future.

On the basis of data from the field, input from various non- governmental organization with which we form partnerships and reports from the mass media, we are of the opinion that the implementation of the program needs reviewing due to the following reasons:

a. Contrary to expectations, the present crisis has different impacts on different places and social groups in Indonesia. As a result, on many occasions the implementation of this program has missed the target. Therefore, it must have a more precise focus and target.

b. The program proves to have missed the target, as a result of incorrect initial data, inadequate capacity for implementation and an inappropriate fund-disbursement mechanism. The low level of budget realization and leakage/corruption have lowered the quality of the program.

On the basis of the above, and in order not to allow a recurrence of collusive, corrupt and nepotistic practices of the New Order regime, we would like to suggest the following:

First, it is necessary to improve transparency in and accountability of the funds and its utilization, an act which may also simultaneously be considered as part of the financial reform advocated by the World Bank and the IMF. We earnestly propose that aid disbursement should be postponed until the June 1999 general election, i.e. until real commitments and steps are taken to reach the stated goal of the program.

Second, President Habibie must immediately make an official announcement that corruption and budget manipulation for purposes beyond the target of the program, especially for a money politics purpose, will be intolerable and entail heavy penalties, including corruption and budget manipulation committed by high- ranking officials.

Third, officials of the National Development Planning Board must inform the public and the House of Representatives of the amount of the funds available for the program, the allocation of the funds, the program executing agencies, the period of the program and the implementation of the program down to the village level. The board must stipulate the procedures and measures to ensure the accountability of the program.

Fourth, an independent and credible control agency must be set up to monitor the implementation of the social safety net program. This independent agency must comprise representatives of civilian community groups and non-governmental organizations, so that it will be assuredly credible to the Indonesian public and donor institutions. The agency led by Mar'ie Muhammad should stop its activities.

Fifth, the agency will be authorized to evaluate the schemes launched under the program.

Sixth, the urban poor and women must be shown high priority in the program because it is they that have suffered most from the crisis.

ZOEMROTIN KS,

ISC chairperson

BINNY BUCHORI

INFID executive secretary

Jakarta