Subdistrict fund to double

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.