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