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Jakarta Post

Financial aid fails to curb poverty in Lampung

Data released by the Lampung National Family Planning Coordinating Agency (BKKBN) shows that out of residents living in poverty, 39 percent are categorized as pre-prosperous households while 26 percent are Level 1 prosperous households (KS1)

Oyos Saroso H.N., The Jakarta Post, Bandarlampung (The Jakarta Post)
<P><LEADPARA>Despite innovative approaches toward alleviating poverty in Lampung, such as implementing assistance programs, the poverty rate continues to rise, with 65 percent of the population, or 4.8 million people, living below the poverty line. </LEADPARA>
Wed, March 11, 2009

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Financial aid fails to curb poverty in Lampung

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ata released by the Lampung National Family Planning Coordinating Agency (BKKBN) shows that out of residents living in poverty, 39 percent are categorized as pre-prosperous households while 26 percent are Level 1 prosperous households (KS1).

Lampung BKKBN head Abdul Kadir said one factor which had led to an increase in poverty was the huge influx of migrants into the area.

"Many people are poor in Lampung because many migrants have come to live in the province," said Kadir.

Lampung has been ranked the second poorest province in Sumatra since 2007 after Nanggroe Aceh Darussalam. The vast number of those living in poverty has astonished many parties given the numerous assistance packages provided by the central government to Lampung already.

In July last year, the Lampung branch of the Central Statistics Agency (BPS) released data showing the number of people living in poverty stood at only 1.7 million, while the provincial administration - based on direct cash assistance recipients cashed in to offset the increase in fuel prices - listed 785,000 poor families, or around 3.3 million people.

Lampung BPS data from 2008 indicated that by August, the unemployment rate had reached 7.15 percent, an increase when compared to the February 2008 figure of 6.3 percent. The highest unemployment rates were recorded in Bandarlampung (13.4 percent) and Metro city (12.01 percent).

BPS also recorded the total workforce figures in Lampung were at 3.3 million people as of August 2008, or a drop of 115,200 people compared to the previous six months.

The high unemployment rate in Bandarlampung is most likely related to the increase in poverty and crime.

Considering the huge amount of poverty alleviation funds provided so far by the central government and provincial, regency and municipal administrations in Lampung, the increase in poverty has left key bodies stumped.

In 2008, the central government allocated Rp almost 120 billion from the Mandiri Community Empowerment National Program (PNPM) as part of a stimulus package to reduce poverty and unemployment rates in 942 villages, 68 districts and nine regencies in Lampung.

This year, PNPM Mandiri has increased its funding to Rp 220 billion and will allocate 116 fund management units (UPK) to nine regencies, each of which will receive between Rp 300 million and Rp 2 billion.

In 2008, the central government distributed direct cash handouts to 785,000 underprivileged families, each receiving Rp 700,000 annually, or approximately Rp 550 billion in total.

Public Policy and Strategic Study Center director Idhan Januwardana said he was concerned the growing poverty rate in Lampung could add to growing unrest.

"Lampung is one of the most prone provinces to crime in Indonesia. Robberies take place almost daily in a number of places due to the huge disparity between the rich and the poor," said Idhan.

The growing poverty rate is also a clear indicator that development projects have failed in Lampung.

"The provincial budget increases every year. In 2005, it was around Rp 900 billion whereas now it is about Rp 1.7 trillion. The government has also provided assistance funds for the underprivileged, such as the PNPM Mandiri and direct cash assistance. The less privileged can seek free medical treatment thanks to the community health insurance scheme. If the number of people living in poverty continues to increase, I would find this very odd," he said.

Economic observer at Lampung University Asrian Hendi Caya said the high poverty rate could also undermine economic growth in Lampung, besides potentiality sparking social conflict.

"Perhaps there is economic growth in the macro sense, but it can be enjoyed only by a few. Poverty creates poor working input, which in turn hampers economic growth," he said.

Asrian said the government poverty alleviation programs could not reduce the number of poor because they were being carried out in a partial manner.

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