Cash Assistance Can Be Distributed for 5-10 Years

Yogyakarta (Antara Bali) - Indonesian government's compensation to the poor through temporary direct cash assistance (BLSM) can actually be given five to 10 years, said an Economic Observer from Gadjah Mada University Rimawan Pradibtyo here Friday.

"I would propose the direct cash assistance could be given five to 10 years, because Rp150,000 assistance per month is expected would only spend 25 trillion Rupiah and it is only about 12 percent of the total fuel subsidy at Rp306 trillion per year that has been felt by more rich people," said Rimawan.

According Rimawan, the government's assistance compensation programs is more rational than providing subsidy for fuel that the implementation is missed its target consumer.

"There is no prove that the direct assistance is considered to be not educative, compare to the subsidized fuel that is mostly used by rich people, is that educating?" He said.

Furthermore, the direct fund assistance distribution to poor people can actually increase the gross domestic product if channelled through financial institutions. Because transactions in financial institutions will increase as we get customers. (*/DWA)