Social safety net program set to continue
Social safety net program set to continue
JAKARTA (JP): The government will continue the social safety
net program despite a possible suspension of international aid to
Indonesia, National Development Planning Board chairman Boediono
said here on Tuesday.
"The government's social program in helping the poor such as
the social safety net program (JPS) will continue," he said,
adding that the government would use existing funds to finance
the project.
The International Monetary Fund (IMF) and the World Bank
threatened last week to suspend the disbursement of their loans
if the government failed to swiftly and satisfactorily resolve
the Bank Bali scandal. The suspension will affect the US$600
million in soft loans from the World Bank to support the social
safety net adjustments.
The social safety net loan was initially scheduled for release
in March, but was delayed by the bank following reports from non-
governmental organizations of political abuse in aid disbursement
in gaining voters for the June general election.
The government has allocated some Rp 6 trillion for the social
safety net program during the 1999/2000 fiscal year to help the
poor cope with the economic crisis.
Boediono said the IMF had delayed its review mission, which
was scheduled to take place by the end of this month, until the
Bank Bali case, which involves the questionable transfer of Rp
546 billion from the bank to a company linked to the ruling
Golkar Party, is solved.
The review postponement would mean a delay in the disbursement
of the agency's loan installment of $460 million for October.
The agency has organized $43 billion in international bailout
funds to help Indonesia cope with its worst ever crisis, of which
$12.3 billion will come from its own coffers.
"The IMF has called on the government to satisfactorily solve
the Bali case, while the time span is not a question," Boediono
said.
He said the possible suspension would not distract the
government's efforts in carrying out its fiscal and monetary
policies in accordance with the economic reform program agreed
with the IMF.
"We will adjust our programs with the funds available at the
time. We will be very flexible in running the programs," Boediono
added. (01)