The current global financial crisis is hindering efforts to alleviate poverty in Indonesia, with the number of poor people expected to rise well above the government's predictions, the Social Services Ministry's secretary-general Chazali Situmorang said Thursday.
Speaking at a dissemination session for the 2009 social empowerment program at the Sanur Paradise Plaza Hotel, Chazali quoted an estimate by the National Development Planning Board that number of poor people was set to increase to 33.714 million, far more than the government's estimate of 32.38 million.
That figure makes up 14.87 percent of the Indonesian population, or slightly higher than the estimates set in the 2009 State Budget of 14 percent.
"The Finance Ministry has prepared a fiscal stimulus package of Rp 71 trillion *to mitigate the impacts*," Chazali said.
"Of that fund, Rp 11 trillion is allocated for People's Business Loans *KUR* and the extension of the National Community Empowerment Program *PNPM*."
The stimulus is expected to reduce the poverty rate to 13 percent and unemployment to 8 percent.
Chazali added the program was focused toward labor-intensive projects, as the crisis had caused many workers to be laid off.
Meanwhile, Bali Provincial Secretary Nyoman Yasa admitted poverty alleviation programs in the province had yet to take full effect, having suffered greatly from bombings and increased fuel prices.
"We are prioritizing poverty alleviation programs over the next five years by creating more employment opportunities," he said.
The Bali office of the Central Statistics Agency (BPS) recorded a slight decrease in the number of poor people in the province, from some 147,000 in 2006 to about 134,000 in 2008.
- Ni Komang Erviani
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