Fidel Ali & Vanesha Manuturi, Jakarta – Indonesia's antigraft agency has called on the central and regional governments to put social aid disbursement on hold until the end of presidential election in July to avoid them from being corrupted.
Corruption Eradication Commission (KPK) spokesperson Johan Budi said that it sent on Tuesday a letter to President Susilo Bambang Yudhoyono and governors, pointing out that party members are thought to have used the social aid funds to partially finance their campaign activities.
"Our study and recent cases show that social aid tends to be corrupted by the regional government," Johan said. "We want the social aid to be managed by one ministry, the Social Ministry, not every ministry like we see now. Therefore, the social aid will be manageable and be easy on supervision."
The government is set to spend Rp 91.8 trillion ($8 billion) from its social aid budget to 15 ministries and institutions this year. The programs will cover health care, education, and poverty eradication programs. By comparison, the government disbursed Rp 59 trillion in 2013 and Rp 55 trillion in 2012 for social aid programs.
Ahmad Erani Yustika, an economist from Institute for Development of Economics and Finance (Indef), agreed that social aid funds should be disbursed after the election. "The government should make the process more transparent, and evaluate its effect on people who receive such financial aid," Erani said.
Still, economists and analysts in Jakarta say that such a call for a delay would have little impact on the country's economy. "The impacts would be minimal. It's not like the government would dismiss the aid for the entire year," said Purbaya Yudhi Sadewa, head of economic research at Danareksa Research Institute.
Eric Alexander Sugandi, economist from Standard Chartered Bank, said that while the effects of such a delay would be minimal to the performance of the economy on the macro level, "it will affect people's consumption, particularly those with lower income. They may decide not to go to the hospital when sick."
A lion's share of the increase, at Rp 19.9 trillion, is allocated for assistance program to help the poor in paying for the premium in the government's universal health program (BPJS), Ministry of Finance data showed. The BPJS law, which became effective on Jan. 1, requires the government to pay the premiums of the poor.
Finance Minister M. Chatib Basri said last week that the BPJS premium is unlikely to be delayed, but other social aid programs – which are not urgent – will be evaluated.
Of the 15 ministry and institutions that were chosen to disburse social aid funding, eight are controlled by members of political parties.
Suryadharma Ali, who is the minister of religious affairs, is chairman of the United Development Party (PPP). The ministry is tasked with Rp 12.7 trillion in social aid spending.
The Agriculture Ministry, which is led by Suswono of the Prosperous Justice Party (PKS), is tasked with Rp 5.3 trillion. The Ministry of Social Affairs, which is also controlled by a PKS party member, Salim Segaf Al Jufri, will manage Rp 5.5 trillion.
PPP's Djan Farid, who helms the Public Housing Ministry, oversees disbursement of Rp 1.8 trillion this year.
Manpower and Transmigration Minister Muhaimin Iskandar, from the National Awakening Party (PKB), will oversee Rp 32.6 billion. The Underdeveloped Areas Ministry, headed PKB's Helmy Faishal Zaini, oversees Rp 766 billion.
The Cooperatives and Small Medium Enterprises Ministry, controlled by Syarifuddin Hasan of the Democratic Party, will disburse Rp 285 billion. The Maritime and Fishery Ministry, which is controlled by Golkar Party's Sharif Cicip Sutradjo, will manage Rp 611 billion.
Sports Minister Roy Suryo of the Democratic Party, however, had his ministry's Rp 532 billion budget for social aid canceled.
Source: http://www.thejakartaglobe.com/news/kpk-wants-delay-social-aid-spending-presidential-election/