YLKI blasts govt's failure to disburse subsidy funds

YLKI blasts govt's failure to disburse subsidy funds

The Jakarta Post, Jakarta

As malnutrition cases across the country hit the headlines, the
Indonesian Consumers Foundation (YLKI) has drawn attention to the
government's failure to disburse the fund for the poor generated
by slashing the fuel subsidy.

"For the last three months the people have had to live with
the fuel price increase, which has caused the prices of basic
necessities to increase, but people in hardship have been offered
no financial help.

"Malnutrition occurs because people can no longer afford to
buy healthy food," YLKI chairwoman Indah Suksmaningsih said on
Friday.

The consumer watchdog presented the results of its research
together with the Public Health School of the University of
Indonesia on the state's health program since the fuel price
increase in March, as well as the YLKI's analysis of the impact
of the fuel price raise enforced almost every year since 2001.

The YLKI's researcher in the health sector, Ilyani Andang,
explained that malnutrition is a short-term phenomena that occurs
if a child's diet is deficient in carbohydrates and proteins over
a three to six month period.

"What has happened over the last three to six months? The
price of fuel went up," Ilyani said.

Of the Rp 20 trillion (US$2.08 billion) saved from the slashed
subsidy this year, Rp 2.1 trillion has been allocated for
health care, specifically to set up health insurance for 36
million impoverished people.

The YLKI said the insurance scheme would not be effective in
preventing malnutrition cases because the scheme was a curative
action.

"To stop this problem, the government has to set up preventive
actions, not curative ones," said Ilyani.

The YLKI said the state budget allocation for the health
sector was too small at 2.5 percent of the gross domestic product
(GDP), or US$2 per person per year.

"It is even lower compared to Vietnam's health budget, which
is around 4 percent," said Indah.

The foundation said that health services at regional level
were worst, as provincial administrations allocated only around
0.56 percent to 5 percent of their provincial budget.

"Several administrations have even treated puskesmas
(community health centers) and the posyandu (integrated health
service posts) as their cash cow," said Ilyani.

Indah said the government had been slow in disbursing the fund
for the underprivileged, but acted with great speed when it came
to raising tariffs for public services.

At the press conference, the YLKI rejected the plan to raise
tap water and electricity tariffs as this would not guarantee the
quality of services provided by PT PLN and city water companies
would improve.

"The electrical power shortage was caused by the fuel price
increase, which meant PLN could not afford to buy more fuel to
run its plants. Moreover, increasing the tap water tariff would
only cause people to turn to well water, which is often
polluted," Indah said. (006)