Subdistrict councils still in the dark about loans

Rendi A. Witular, The Jakarta Post, Jakarta

Subdistricts here are still in the dark about how to properly manage the Rp 250 million (US$25,189) soft loan promised to each of them by the city administration, but that has not stopped subdistrict councillors from already planning how they are going to use it for themselves.

City Governor Sutiyoso on Tuesday symbolically handed over Rp 250 million to each of the city's 267 subdistricts under the Subdistrict Community Empowerment Program. The signatures of the subdistrict head, subdistrict council (Dekel), and an appointed non-government organization are needed to withdraw the money from city-owned Bank DKI.

Head of Pejagalan subdistrict council in North Jakarta Asep Edi Effendi, said on Thursday that they had not been informed how to withdraw the money.

"We haven't received the money because we still don't know the procedure. We will consult the subdistrict chief on the withdrawal," he said.

However, Asep had planned to cut 1.5 percent of the loan, amounting to Rp 3.75 million.

"We have to cut it by 1.5 percent to cover food and drink costs during council meetings and other expenses," he said.

He said they had gathered the data on residents who were deeply in need of the loan.

Furthermore, Asep said the council had appointed three people, whom he called non-governmental organization representatives. But he said he had forgotten their names.

The NGO assigned to monitor the use of the loan will in turn receive Rp 22 million.

Similar uncertainties and irregularities were also found in Petamburan subdistrict, Central Jakarta.

The council head, Abdul Azis, revealed that he had yet to withdraw the money as they needed more time to inform subdistrict residents about the program.

But he said the Central Jakarta mayoralty office had appointed two NGO members to assist them with the program.

When asked about the backgrounds of the NGO members, Azis also failed to elaborate, saying he had yet to meet the individuals.

On the contrary, Central Jakarta mayoralty spokesman Asbarani, denied that the mayoralty had recommended any NGO to the Dekel.

The soft loan, with an interest of 1 percent per month, is aimed to restore informal businesses and improve public infrastructure. Sutiyoso said that the debtors were not obliged to return the loan.

Flood victims had waited with great anticipation for the loan, hoping that it would mend their loses during the flood.

Alin, a resident of Jl. Teluk Bayur in Pejagalan subdistrict, said she would apply for it to boost her business, because her small noodle restaurant was shut down for three weeks due to the floods.

"I've heard the news on the loan from TV, but I'm not so sure about how to apply. I hope that the loan will be delivered to those who are really in need," said Alin, who needs at least Rp 5 million to restore her business.

Last month, the administration granted Rp 50 million to each of the 167 flood-hit subdistricts. It was unfortunately spoiled as members of the subdistrict councils had reportedly siphoned off the aid.

Sutiyoso said earlier that it was the public's responsibility to probe and control any aid irregularities. However, he did not elaborate on how flood victims could apply for a loan.