Rizky Amelia & Markus Junianto Sihaloho – Regional heads have still not responded to a letter sent out by the country's anti-corruption body requesting details into the management of social aid funds.
"We haven't received a reply, but it will be [sent] through the Home Affairs Ministry," Corruption Eradication Commission (KPK) deputy chairman Busyro Muqoddas said on Thursday.
The KPK last month called on the central and regional governments to put social aid disbursement on hold until the end of the presidential election in July to avoid corruption.
The clarification letter was sent to President Susilo Bambang Yudhoyono and governors with an added warning that party members may have used the funds to partially finance their campaign activities.
Busyro said the move had been necessary as it was the antigraft agency's responsibility to prevent budget misuse and to monitor how the funds were being spent. He added that the delays and lack of responses showed a strong indication of some irregularities in financial management; KPK has not been able to obtain data on recipients of the funds, the amount of money each recipient received and even the date of issuance.
People's Conscience Party (Hanura) politician Sarifuddin Sudding said his party supports the anti-corruption agency's call to halt spending.
"The insistence of disbursing it [the funds] in large amounts ahead of the elections raises suspicions on abuse of power; that it was used to accommodate the interest of the ruling coalition parties," said Sudding, adding ministries led by politicians from coalition parties were given access to significant amounts of social aid funds, most notably the Religious Affairs Ministry, which is led by the United Development Party's (PPP) chairman, with a budget of Rp 11.5 trillion ($1.015 billion).
Meanwhile, the Social Affairs Ministry, led by a Prosperous Justice Party (PKS) politician, has Rp 5.5 trillion at their disposal; the Agriculture Ministry, another led by a PKS member, has a budget of Rp 4.9 trillion; the Housing Ministry, with PPP backing, has access to Rp 1.8 trillion; and the Maritime Affairs and Fisheries Ministry, led by a member of Golkar, has a social aid budget of Rp 595 billion.
"Why didn't they distribute the money last year? This is the year of politics. The people have become smarter and they can read into the situation," Sarifuddin said.
The 2014 state budget initially allocated only Rp 55.86 trillion in social aid funds, but the figure was later revised to Rp 91.8 trillion based on presidential instruction, despite the fact that only Rp 7.4 trillion had been disbursed up until February.
"That's why Hanura agrees with KPK to postpone the disbursement of the Bansos [social aid fund] until the elections are over," Sarifuddin said.
"However, we will also pay close attention to the Bansos that has to be disbursed before the April 9 legislative election, because it concerns the common people's health and interests," he added, referring to funds for School Operational Assistance (BOS) and Social Security Organizing Body (BPJS).
The issuance of social aid funds that cannot be postponed until after the elections are those meant for the Education Ministry, which has a budget of Rp 28.3 trillion, and the Health Ministry with Rp 19.9 trillion. "These two ministries handle school children and sick people; allocation can't be postponed," Sarifuddin said.
Abdullah Dahlan, a researcher with Indonesia Corruption Watch (ICW), claimed the significant social aid budget increase went against appropriate mechanisms and had political undertones.
"It [the revision] used the legal umbrella of presidential instruction, and was politically motivated," Abdullah said in a discussion in Jakarta on Wednesday, before pointing out that a conflict of interest arose when President Susilo Bambang Yudhoyono, who is also chairman of the Democratic Party, made the decision to expand the social aid budget. "There is the danger of funds being used for political activities," he added.
The government is set to distribute Rp 91.8 trillion from its social aid budget to 15 ministries and institutions this year, for programs covering health care, education and poverty eradication programs. By comparison, the government disbursed Rp 59 trillion in 2013 and Rp 55 trillion in 2012 for similar campaigns.
Ahmad Erani Yustika, an economist from the 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 a delay would have little impact on the country's economy. "The effect would be minimal. It's not like the government would dismiss the funds for the entire year," said Purbaya Yudhi Sadewa, head of economic research at Danareksa Research Institute.
Eric Alexander Sugandi, an economist from Standard Chartered Bank, said that while the ramifications of such a delay would be minimal to the economy's performance on the macro level, "it will affect people's consumption, particularly those with low incomes. They may decide not to go to the hospital when they fall sick."
A lion's share of the social fund increase, at Rp 19.9 trillion, is allocated for assistance programs to help the poor pay for their premiums in the government's universal health program, run by the BPJS, according to Finance Ministry data.
Source: http://www.thejakartaglobe.com/news/kpk-says-stonewalled-social-aid-spending/