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.