TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Jokowi opposed to govt'€™s poverty relief plan

Despite his populist pro-poor policies, Jakarta Governor Joko “Jokowi” Widodo says he is against the central government’s planned poverty relief program following the expected cut in fuel subsidies

Sita W. Dewi (The Jakarta Post)
Jakarta
Tue, June 18, 2013

Share This Article

Change Size

Jokowi opposed to govt'€™s poverty relief plan

D

espite his populist pro-poor policies, Jakarta Governor Joko '€œJokowi'€ Widodo says he is against the central government'€™s planned poverty relief program following the expected cut in fuel subsidies.

The central government is planning to compensate poor citizens with temporary direct cash assistance (BLSM), which many believe will be modeled on 2008'€™s controversial direct cash assistance (BLT).

According to the government'€™s proposal, poor households will get Rp 150,000 (US$15.17) each month for four months, starting immediately after fuel prices are increased.

'€œI have never favored cash assistance policies. I would rather give the cash to small and medium enterprises and home industries because that has a more positive impact. I have never agreed with BLT, BLSM and the like,'€ Jokowi told reporters at City Hall on Monday.

He emphasized that the central government'€™s relief program would be of no help to poor citizens.

'€œHanding out cash won'€™t encourage people to do something to improve their lives. To me, it would be better to encourage them to start or develop businesses,'€ he said.

Jokowi, who assumed his post in October, has launched several pro-poor initiatives, including the Kartu Jakarta Sehat healthcare program and Kartu Jakarta Pintar (Jakarta Smart Card) program to support students from low-income families.

The BLT program was launched by the government in 2008 when fuel oil prices were raised due to the skyrocketing of world crude price to $140 per barrel.

Around 19.1 million poor families throughout Indonesia were recorded as having received monthly cash assistance of Rp 100,000 plus cooking oil and sugar handouts from June 2008 to February 2009 in compensation for the increased price of goods following the government'€™s decision to raise domestic fuel oil prices.

For its BLT program, the government earmarked Rp 41.1 trillion for distribution to the poor.

Critics alleged that the distribution of cash assistance was used as a political tool to woo voters in the 2009 elections, in which President Susilo Bambang Yudhoyono'€”who was running for a second term'€”won a landslide victory.

The distribution of the BLT program in Jakarta, which targeted more than 150,000 eligible families, was marred by numerous problems, varying from chaotic distribution schedules to administrative mishaps.

The central government is expected to announce its decision regarding its plan to cut fuel subsidies some time this week following the House of Representatives'€™ plenary session on the revised state budget on Monday.

The government and the House are currently deliberating the 2013 revised state budget bill during a plenary session.

The bill contains a stipulation that raises the subsidized fuel price by around 33 percent to Rp 6,500 per liter. The price of subsidized fuel is currently set at Rp 4,500 per liter.

In 2013, the fuel subsidy accounted for almost Rp 194 trillion or about 11.5 percent of the state budget.

Last year, subsidized fuel consumption exceeded 45 million kiloliters, well over the target of 40 million kiloliters.

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.