Govt to allocate Rp270 trillion for poverty eradication

Antara News, Tuesday, February 2, 2010 14:22 WIB

Jakarta (ANTARA News) - The government plans to allocate Rp270 trillion in funds for its poverty eradication program 2010-2014, according to a minister.

"For the implementation of the programs aimed at eradicating poverty in regions particularly, a budget of Rp270 trillion will be allocated," National Development Planning Minister/Head of the National Development Planning Board (Bappenas) Armida S.

Alisyahbana said in her written response to the working meeting with the Commission XI of the House of Representatives (DPR) here on Monday.

The government would also adopt a poverty eradication policy and program consisting of three clusters, namely to provide protection and assistance for poor families and communities, to boost poor people`s empowerment, to improve their welfare, and to empower micro- and small-scale businesses.

"The government will improve the quality of the three clusters by implementing family-based social protection programs, improving the quality of the National Public Empowerment Program (PNPM) `Mandiri` in an integrated way, and by improving the implementation of the People`s Credit Scheme (KUR)," Minister Armida Alisyahbana said.

The government hopes to cut the poverty rate by 8 to 10 percent by 2014, she said. Currently, the government`s priority is to lower the poverty rate which stands at 12 to 14 percent now.

Meanwhile, Head of the Fiscal Policy Board Anggito Abimanyu said high and quality economic growth was a prerequisite to reduce the poverty and unemployment rates.

"The economic growth in 2010 is expected to reach 5.5 percent and a quality growth needs investment to boost production sectors," he said.

The Gross Domestic Product in 2010 is expected to consist of public consumption at 60.5 percent, government consumption 9.2 percent, investment 27.5 percent, and clean exports 2.4 percent.

"Increased investment contribution is expected to cut the unemployment and poverty rates because of a rise in the people`s income," Anggito Abimanyu said.