Soeharto quits YDSM chairmanship

JAKARTA (JP): Former president Soeharto has resigned as chairman of the Yayasan Dana Sosial Mandiri (YDSM), a social foundation that sponsors rolling fund schemes to help people living under the poverty line, because he is "too busy".

"Pak Harto left the foundation last month saying he was very busy," Coordinating Minister for People's Welfare and Poverty Eradication Haryono Suyono said.

He said that he has been appointed acting chairman until a permanent appointment was made.

Since stepping down under a wave of protests last month, there has been immense public censure of the Soeharto family's wealth and various foundations chaired by the former president.

Many have questioned the methods employed by the foundations to secure donations, including obligatory contributions from civil servants to certain funds.

Haryono said yesterday that Presidential Decree No. 29/1997 which covers the disbursement of government credits to low-income families through YDSM had been revoked.

Antara quoted him as saying that the foundation was now only managing the Rp 1.1 trillion for credit schemes acquired through last year's budget.

He claimed the foundation as a whole has distributed low- interest loans worth Rp 800 billion to eight million families.

He said that although the government has now stopped disbursing funds through YDSM, the foundation would likely be able to continue its work because it receives a continual stream of interest payments on existing loans which it would be able to recycle. (rms)