The government has increased the poverty alleviation fund to Rp 78 trillion (US$6.9 billion) in an effort to reduce the poverty rate, which is predicted to increase as impacts of the global financial crisis are felt.

Social Services Minister Bachtiar Chamsyah said the fund would go towards various programs including the direct aid cash program (BLT), the rice for poor people and school operational aids program (BOS) as well as empowerment programs such as the independent empowerment national program (PNPM) and the hope family program (PKH).

In last year's state budget, the government allocated some Rp 50 trillion for the poverty fund. The recent addition means there will be a more than 50 percent increase in the fund.

However, Bachtiar said he had yet to see predictions of how many people in Indonesia are expected to fall below the poverty line next year as a result of the crisis. This year the number of people living in poverty dropped to some 35 million, down from 37 million in 2007, he said.

"We have yet to do the calculations but the poverty rate will increase. If a worker is laid off he will sell his property and so he will become poor.

"That's why we are increasing the poverty fund," he said.

Bachtiar was speaking Friday afternoon after attending a seminar for young leaders at the Bandung Islamic University.

He also admitted that he had yet to be able to reduce pockets of poverty in Java despite being social minister for seven years, something he blamed on the high complexity of problems on the densely populated island.

Central, East and West Java remain the three provinces with the most poor people.

Bachtiar said poverty prevention could be achieved by channeling huge funds to entrepreneurial programs; increasing state-owned banks microcredit (KUR) programs from Rp 12 trillion to Rp 20 trillion next year is one idea.

"The increased number of entrepreneurs is expected to have a multiple effect for both poverty alleviation and economic growth," he said.

In 2008 KUR funding reached more than 1 million households with loans provided by BNI, BRI, Bukopin, Bank Mandiri and Bank Syariah Mandiri.

Bachtiar added that, in addition to economic difficulties, the numerous natural disasters in the country were another factor increasing poverty in Indonesia.

However, the government only provided a comparatively small increase of less than 50 percent in natural disaster funds; from Rp 350 billion this year to Rp 500 billion in 2009.

"Handling disasters is easier as we can ask for funds from the Office of the Coordinating Minister for People's Welfare or other ministries if we are short of funds," Bachtiar said.

"We are focusing on how to prevent residents from starving during natural disasters. I will help if their homes are destroyed and there are dead people.

"But other ministries are taking care of disasters mitigation and prevention," he added.

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