Tangerang takes loans to fix schools

Tangerang takes loans to fix schools

Multa Fidrus, The Jakarta Post, Tangerang

The Tangerang Council has given the green light for a proposal to
renovate 220 school buildings in the municipality, with most of
the estimated Rp 200 billion (US$22.22 million) budget loaned
from private companies.

"In principle, the Council had no objection to the plan to
simultaneously renovate the damaged school buildings next year by
involving private investors," deputy speaker Bonnie Mudfijar said
on Thursday.

He added that the Council would deliberate the proposal at a
two-day plenary session next Wednesday and Thursday.

In his proposal, Tangerang mayor Wahidin Halim explained that
the administration's budget for 2005 would not be adequate to
finance the project.

Wahidin told The Jakarta Post that the administration would
repay the loan in installments within three years, "while the
investors would gain benefit from the interest".

The proposal was made because a number of school buildings,
most of which were built in the 1970s, had collapsed and could
not wait for three years for the municipality to acquire the
money to finance the project, he added.

Bonnie, who is from the Prosperity and Justice Party, said
that after all schools were renovated, the administration should
prohibit school managements from collecting money from the
parents for a building fund.

"This happens every year when parents register their children
as new students. School managements usually ask for a
"development donation" along with school admission fees from the
parents," he said.

"Such practices must not happen again next year as the
administration will have renovated all damaged school buildings.
There will be no reason for school managements to collect money
from parents."

Bonnie also reminded the administration to open bidding in
order to find the best developer to carry out the massive
renovation project.

Separately, Tangerang municipal administration secretary Harry
Mulya Zain pledged that the administration would ensure that
parents are not asked to give a development donation starting
next year.

"This is a consequence of the massive school renovation
project that we will carry out. The donation has been a heavy
burden for parents and this will no longer happen," he said.

He added that the administration was considering issuing a
bylaw prohibiting schools from collecting money from parents also
stipulating sanctions and punishment for school principals who
violate it.