ID :
32058
Tue, 11/25/2008 - 06:40
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http://m.oananews.org//node/32058
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MINISTER NOT TO DISBURSE RP381 BLN FOR COOPERATIVES
Jakarta, Nov 24 (ANTARA) - Cooperatives and Small- and Medium-scale Entreprises (SMEs) Minister Suryadharma Ali said he would not disburse Rp381 billion in funds initially earmarked for the empowerment and reinforcement of cooperatives and SMEs in 2008.
"I am not going to disburse the RP381 billion for the empowerment of cooperatives. I will return the funds to the finance ministry," Suryadharma Ali said at a regional cooperatives empowerment meeting in Balikpapan, East Kalimantan, on Monday.
He said he was compelled to take the decision due to the relatively short time remaining before the budget year was closed on December 15, 2008.
The minister said it was not possible for him to disburse and distribute such a large sum of funds to cooperatives and SMEs in such a short time.
"I am afraid if the funds are disbursed there will be leakages here and there which will in the end cause problems with the Corruption Eradication Commission (KPK)," the minister said.
He said the decision not to disburse the funds was taken among others things due to the risks involved, particularly after they had been registered in the ministry's budget entry for capital expenditures.
Funds that had been registered in the ministry's budget entry for capital expenditures can be spent but must eventually be returned to the state coffers in exactly the same amounts as when they were disbursed, he said.
"Bank loans run the risk of becoming bad, the more so funds given as assistance. So there must be a certain rule on possible risks so that a loss will not be calculated as a loss to the state," he said.
Therefore, the minister said, he had decided that for the time being, the funds would not be disbursed. "We hope there will be other ways to help empower cooperatives and SMEs so that existing empowerment programs can be continued," he said.
The budget provided for the cooperatives and SMEs ministry for 2008 was Rp1,098 trillion, consisting of Rp761 billion (65.26 percent) to be managed by the ministry and Rp381 billion (34.71 percent) by the Revolving Funds Management Institution (LPDB).
The Rp381 billion managed by the LPDB was intended for empowerment and reinforcement of cooperatives and SMEs throughout Indonesia in 2008.
"I am not going to disburse the RP381 billion for the empowerment of cooperatives. I will return the funds to the finance ministry," Suryadharma Ali said at a regional cooperatives empowerment meeting in Balikpapan, East Kalimantan, on Monday.
He said he was compelled to take the decision due to the relatively short time remaining before the budget year was closed on December 15, 2008.
The minister said it was not possible for him to disburse and distribute such a large sum of funds to cooperatives and SMEs in such a short time.
"I am afraid if the funds are disbursed there will be leakages here and there which will in the end cause problems with the Corruption Eradication Commission (KPK)," the minister said.
He said the decision not to disburse the funds was taken among others things due to the risks involved, particularly after they had been registered in the ministry's budget entry for capital expenditures.
Funds that had been registered in the ministry's budget entry for capital expenditures can be spent but must eventually be returned to the state coffers in exactly the same amounts as when they were disbursed, he said.
"Bank loans run the risk of becoming bad, the more so funds given as assistance. So there must be a certain rule on possible risks so that a loss will not be calculated as a loss to the state," he said.
Therefore, the minister said, he had decided that for the time being, the funds would not be disbursed. "We hope there will be other ways to help empower cooperatives and SMEs so that existing empowerment programs can be continued," he said.
The budget provided for the cooperatives and SMEs ministry for 2008 was Rp1,098 trillion, consisting of Rp761 billion (65.26 percent) to be managed by the ministry and Rp381 billion (34.71 percent) by the Revolving Funds Management Institution (LPDB).
The Rp381 billion managed by the LPDB was intended for empowerment and reinforcement of cooperatives and SMEs throughout Indonesia in 2008.
