Budi Santosa/Hendra & GB, Jakarta – The government has admitted that cash transfers to be used as fuel subsidies have not been distributed uniformly. Not only have some areas missed out altogether, but even those allocated funds have yet to receive them. Furthermore, the operational costs are to be taken from existing social security programs and only half the families classified as "poor" will receive the payments.
Director General for Rural People's Empowerment from the Ministry of Internal Affairs and Regional Autonomy, Suratman, revealed the discrepancies to journalists at the "Fuel Sosialisation" team's secretariat office on Jalan Plaju, Jakarta, Thursday. He said that the subsidy scheme, hatched in response to the public outcry after a recent 12% price hike, would be in place by November.
According to Suratman, every head of a family would eventually receive a cash payment of Rp 10,000 per month. He also said that the Rp 200 billion set-aside for cash transfers would not have one cent deducted for operational costs.
"Operational fees for distribution will not be taken from the cash transfer funds. However, the operational funds will be taken from, for example, the PMDKE program, the family welfare movement (PKK) and other programs which are already in place," he said.
Suratman further said that 6.6667 million families would receive the cash transfer. However, according to national population growth studies in the year 2000, the number of poor families which classify as 'poor' and should thus be eligible for the subsidy number 13.8 million. Suratman admitted that the existing Rp 200 billion could not fully cover this number of poor families. "If all the heads of poor families wanted to get the cash transfer, it is estimated that Rp 405-410 billion would be needed," he said.
He also said that, of Indonesia's 341 regencies/cities, 321 would receive the cash transfer while 20 would miss out. These 20 regencies/cities were considered to have fewer poor families. The regencies/cities which will not receive the cash transfer for fuel subsidy are for province: Sibolga, Tanjung Balai Karo (North-Sumatra province), Dumai (Riau), Solok, Padang Panjang, Paya Kumbuh, Bukittinggi (West Sumatra), Sukabumi (West Java), Magelang and Salatiga (Central Java), Blitar, Mojokerto and Madiun (East Java), Denpasar, Tabanan Regency, Badung Regency (Bali), Berau Regency, Nunukan Regency (East Kalimantan), Pare-pare (South Sulawesi).
The provinces that will receive the bulk of the funds are East Java, Central Java and West Java while Yogyakarta receives the least on Java. In Aceh, West Papua, East Nusa-Tenggara, Maluku and Southeast Sulawesi, almost all areas, right down to the subdistricts are to receive the subsidies.