Subsidy for education left undelivered to 11 provinces

Subsidy for education left undelivered to 11 provinces

Rendi A. Witular and Slamet Susanto, The Jakarta Post, Jakarta/Yogyakarta

With another fuel price hike looming, low-income assistance funds
from a fuel price increase in March have not been fully delivered
to the education sector.

Minister of National Education Bambang Sudibyo said nearly Rp
2 trillion (US$200 million) in funds had not been distributed
properly by local administrations to designated schools.

"There are several problems hindering the transfer of the
funds, such as a lack of leadership in local governments and
insufficient banking infrastructure in some remote areas,"
Bambang said after a Cabinet meeting on Tuesday.

Following the increase in fuel prices in March, the central
government allocated Rp 5.13 trillion as an indirect subsidy for
the education sector. The money is part of Rp 17.8 trillion in
low-income assistance funds to be disbursed to the poor this
year.

Bambang said some Rp 3.18 trillion of the subsidy for the
education sector had reached targeted schools, while Rp 1.46
trillion had yet to be channeled by local administrations for a
number of reasons. Another Rp 478 billion was never received by
local administrations because of bank transfer and leadership
problems.

Among the provinces experiencing trouble delivering the funds
to schools are Banten, Jambi, East Kalimantan, Central
Kalimantan, South Kalimantan, Maluku, North Sulawesi, Riau
Islands, North Sumatra, Papua and West Irian Jaya.

Since the rule of former president Soeharto, the government
has provided assistance for low-income people in the form of
indirect subsidies, such as inexpensive rice and projects in the
fields of education, health and rural infrastructure.

Bambang said the Ministry of Home Affairs would dispatch
officials to help provinces deliver the funds to schools.

The government announced on Monday that it planned to further
raise fuel prices before Idul Fitri. After this next price
increase, the government will directly pay out Rp 100,000 in cash
each month to 15.5 million families, or some 64 million people,
living on or below the poverty line.

People will be able to collect the money at post offices or
Bank Rakyat Indonesia branches.

In Yogyakarta, Minister of Social Services Bachtiar Chamsyah
said making cash payments to low-income individuals was not the
best solution, but at least it would help prevent social
upheaval.

"We expect the money to help people hit hardest by the soaring
fuel prices. After three months we will evaluate the scheme,"
Bachtiar said.

The government will raise fuel prices in response to
increasing oil prices in the international market. If current
fuel prices are maintained, it is estimated the state budget
would soar to Rp 145 trillion.