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Subdistricts can't pay for cheap rice

| Source: JP

Subdistricts can't pay for cheap rice

JAKARTA (JP): Most of the capital's 265 subdistricts owe a
total of Rp 1.9 billion (about US$215,000) to the Jakarta chapter
of the State Logistics Agency (Dolog Jaya) for cheap rice they
received in the past five months, an official said.

Djodjo Sutardjo of the city's regional economic bureau
(Binekda) told The Jakarta Post on Saturday that subdistrict
heads -- assigned to provide the rice at discounted prices to
needy local residents -- paid only Rp 980 million of the total Rp
2.88 billion debt.

Djodjo could not come up with a concrete reason for the
problem.

He speculated that a scarcity of branches of Bank Bukopin, the
designated payment bank, may have been a problem for local
officials.

Payment for the cheap rice scheme, beginning last July and
based on gubernatorial instruction No. 273/1998, should be
transferred to Binekda's bank account through Bank Bukopin
branches, Djodjo said.

Funds were then to be transferred to Dolog Jaya. No reasons
were given for the selection of Bukopin as the designated bank.

In August, most subdistrict heads complained there were no
Bukopin branches in their areas.

They said it would be risky to carry considerable amounts of
money to distant locations, Djodjo quoted as their reason for not
paying the debt.

"But we have advised them to simply pay into our other bank
account opened at branches of city-owned Bank DKI which are
easily found in all subdistricts."

The economic crisis assaulting the country for almost two
years has raised bank interest rates to an average 35 percent per
annum.

According to Djodjo, the subdistrict heads should have paid
for the cheap rice at least one week after receiving the
commodity.

"You have to pay cash for what you get," he said.

All subdistrict heads and five mayors were also required to
give full reports of the payment monthly to the governor and
Dolog Jaya as stipulated by the law.

"Until today, no single report has been made by either the
subdistricts, the districts or the mayoralties," Djodjo said.

His office has twice sent urgent letters to all the capital's
five mayors to seriously investigate the matter.

"The last letter was sent on Dec. 20," he added.

Djodjo did not describe measures to be taken by the city
administration against subdistrict heads if payments were not
made.

Under the scheme, subdistricts heads offer the government-
subsidized rice at Rp 1,000 per kilogram to a limited number of
poor residents. On the market, the price of the same quality rice
is about Rp 3,500 per kilogram.

Selected poor families were initially limited to purchases of
10 kilograms each. Since January, the quantity has been increased
to 20 kilograms per family.

According to official data, the program to help families
living below the poverty line in the capital's subdistricts has
already reached 99,872 families.

On Friday, city secretary Fauzi Bowo said that beginning next
month officials from the Ministry of Social Services would
collect the debt directly from the subdistrict heads. (ylt)

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