More Poverty Eradication Programs
Tuesday, 13 May, 2008 | 14:48 WIB

TEMPO Interactive, Jakarta: The government will optimize poverty eradication programs and protect members of the general public on low incomes in order to alleviate the effect of the fuel price increases.

According to Bayu Krisnamurthi, a deputy to the economy minister, respective departments and ministries currently have 51 programs related to poverty eradication, food security, and community empowerment like school operational assistance, health insurance, and family planning.

“These programs are being used to reduce the effects of the fuel price increases,” he said in Jakarta yesterday (12/5).

“We want these programs to be implemented this year and in 2009, not just next year,” said Bayu.

Coordinating Minister for People's Welfare Aburizal Bakrie said that in addition to direct cash assistance (BLT), the government will also expand the targets of the cheap rice for the poor program on as well as increasing the amount of rice for the poor from 10 kilogram to 15 kilogram.

“The budget for cheap rice is Rp4.3 trillion and between Rp11 trillion and Rp13 trillion for direct cash assistance,” said Aburizal in Jakarta yesterday.

Other fuel price compensation programs include rice price, food and cheap cooking oil programs, as well as acceleration of the National Program on Community Empowerment.

The government is preparing more assistance for the lower classes of the community, such as workers with salaries of less than Rp2 million, grade I and II civil servants official from group, soldiers, and police personnel of ranks lower than sergeant.

“We are currently formulating the format of this assistance,” said Aburizal

The fuel price increases of between 25 percent and 30 percent will be announced by the end of May.

According to Aburizal, around Rp30 trillion can be saved from the fuel price increases.

Some Rp21 trillion of this will be used for poverty eradication programs while the other Rp9 trillion will be added to the state budget.

Separately, Social Services Minister Bachtiar Chamsyah said that the government guaranteed there would be no leakages, not even a single cent, in direct cash assistance distribution.

“The central government will monitor this directly,” he said.

Tony Prasentiantono, an economist from PT Bank Nasional Indonesia, said that the direct cash assistance would not reduce poverty figures even if it were applied properly.

“The program is not sustainable. It needs other supporting programs,” he said yesterday.

Gunanto | Ezther Lastania