Subdistrict fund to double
Ahmad Junaidi, The Jakarta Post, Jakarta
Though acknowledging its aid fund was ridden with corruption, the city administration announced on Thursday that it was increasing the fund for 242 poor subdistricts from Rp 54 billion this year to about Rp 130 billion next year.
"We decided to increase the fund next year although we found irregularities in the use of the funds," City Council People Empowerment Office head Rochana Manggala told reporters after meeting Governor Sutiyoso at City Hall.
Rochana revealed that among the irregularities was the alleged misuse of Rp 90 million by the chief of the Kelapa Dua subdistrict council in West Jakarta who used the money to repair his home.
She said that in Pluit, North Jakarta, the money, intended to be lent to residents as soft loans, was used to repair subdistrict buildings.
"Sutiyoso has urged me to punish the subdistrict chief and asked him to return the money. He promised to return it after he sold his land," Rochana said.
The disbursement of the funds, under the Subdistrict Residents Empowerment Program (PPMK), was launched last year in a bid to increase the buying power of the residents.
Rochana claimed that about 90 percent of this year's Rp 54 billion had been used by 60,200 residents in the subdistricts as soft loans. About 20 percent of the loans had been repaid.
"It's still a process. I hope that the funds could be returned and used by other residents," she said.
She said 60 percent of next year's Rp 130 billion allocation would be allocated as soft loans for residents, 20 percent for physical development and the remaining 20 percent for social activities.
"The 40 percent for physical development and social activities is given as a grant," she said without giving further details.
However, she said, in future, the administration would assign the subdistrict heads to supervise the use of the money, which was earlier only handled by the subdistrict councils.
Separately, activist Erfan Maryono urged the administration to stop disbursing money to residents as the system was prone to rampant corruption.
"The disbursement of money to residents so far lacks accountability. It should be stopped," said Erfan, the coordinator of the Public Policy Advocacy Team (ATKP) of the Institute of Social and Economic Research (LP3ES).
Besides the lack of accountability, he said the selection of who should receive the aid was not transparent and tended to involve corruption and collusion practices.
Erfan suggested that the administration developed public facilities for the poor, such as water hydrants and public parks, instead of giving out money.