Indonesian Political, Business & Finance News

Tangerang, private sector to repair schools

| Source: JP

Tangerang, private sector to repair schools

Multa Fidrus, The Jakarta Post, Tangerang

An Rp 80 billion (US$8.79 million) allocation from its Rp 205.5
billion education budget was inadequate for the Tangerang
administration to renovate 212 damaged schools in the
municipality, so it has called upon the private sector to cover
the financial shortcoming.

Tangerang is collaborating with private investors through low-
interest loans under an installment scheme, with total investment
reaching Rp 228 billion.

Tangerang Mayor Wahidin Halim said the combined budget would
be enough to renovate the damaged schools this year.

"If we only relied upon the annual budget, the renovation
would take three years to finish. By then, some of the schools
may have collapsed," he told The Jakarta Post on Thursday.

With the support of private investors, the renovation is
projected to be finished by March 2005.

Wahidin said the collaboration scheme with private investors
should be followed by other administrations, and that neighboring
Tangerang regency was already on the look-out for investors for a
similar project.

"Under such a scheme, we can hold on to the budget required
for the renovation and spread the planning, supervision and
maintenance fees over three years," Wahidin said.

By renovating the schools at the same time, the administration
could also save on the price of construction material and
workers' wages, which could fluctuate over time.

"If we can finish the renovations at the same time, the
schools could be used immediately. Students and teachers no
longer need fear that their schools would collapse," he said.

The 212 damaged schools comprise 171 state elementary schools,
15 state junior high schools, 13 senior high schools, 10 Islamic
elementary schools and four vocational schools.

Wahidin said if the administration could finish the renovation
work next year, it would concentrate on improving teachers'
welfare through its 2006 budget.

"In 2006, the education budget will be used to subsidize poor
private schools and help them renovate the schools. The following
year, we will focus ... on improving teachers' welfare," he said.

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