Rp 36.4 Trillion Left for Labor-Intensive Programs

KOMPAS/FERGANATA INDRA RIATMOKO

Residents take water from a channel connected to a spring in Stabelan Hamlet, Tlogolele Village, Selo, Boyolali, Central Java, on Friday (10/7/2020). This water channel was built using the Village Fund.

Village funds are quite effective in reducing poverty in villages due to the impact of the Covid-19 pandemic. The labor-intensive programs can absorb 5.2 million new workers for the August and September 2020 period.

JAKARTA, KOMPAS -- The Villages, Disadvantaged Regions and Transmigration Ministry estimated a leftover of Rp 36.4 trillion in village funds can be utilized for the labor-intensive cash program or PKTD. The government hopes these funds can be immediately utilized from August to September 2020. The PKTD can absorb a workforce of 5.2 million people.

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According to Villages, Disadvantaged Regions and Transmigration (PDTT) Minister Abdul Halim Iskandar, of the total village funds for 2020, which stood at Rp 71.2 trillion, after being allocated for direct cash assistance until December 2020 and other expenditures, it is estimated that there is still Rp 36.4 trillion left. The funds will be used to finance the PKTD program as an effort to reduce poverty in the village.

"As much as Rp 36.4 trillion is expected to be spent from August to September, of which at least 50 percent will be spent on wages. Meaning that from the costs of the PKTD program activities, around Rp 18 trillion of it was allocated as wages," Abdul Halim said in a press teleconference on Tuesday (4/8/2020).

Provisions on the use of village funds for the PKTD program, Abdul Halim added, were stipulated in the circular of PDTT Minister No. 15/2020 concerning Labor-Intensive Cash Assistance and Economic Empowerment through Village-Owned Enterprises. In a circular addressed to the village heads throughout Indonesia it was mentioned that the village heads must prioritize members of poor families, the unemployed, underemployed and marginalized groups.

"Examples of activities that can be applied in this PKTD program are cultivating farmland and plantation land for food security programs, managing village restaurants and restoring tourist attractions or aquaculture," Abdul Halim said.

SUMBER: HUMAS KEMENTERIAN DESA PDTT

Villages, Disadvantaged Regions and Transmigration (PDTT) Minister Abdul Halim Iskandar.

Data from Statistics Indonesia (BPS) shows that unemployment in villages in February 2020 reached 2.1 million people. The PKTD program, which is able to absorb 5.2 million workers, will be able to eradicate unemployment in the village. Assuming 35 working days for two months and a wage of Rp 100,000 per day, each worker will receive Rp 3.5 million in the August-September period.

"In fact, if open unemployment in the village doubled, it could still be overcome through this PKTD program," Abdul Halim said.

The results of a study by the Smeru Research Institute, a public policy review institute, indicate that the government needs to improve social protection programs to overcome the impact of the Covid-19 pandemic in the economic sector. Urgent improvements to be made are updating the data of recipients of social protection assistance so that it is truly on target.

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A small number of beneficiary families are not well targeted, poor and vulnerable poor families are not covered by the program and not all beneficiary families have received various social assistance programmed by the government.

"Here, we have a problem in data updating that is not yet optimal. Some of the causes are limited local budget for updating data and limited human resources in the field. The regional administration needs to strengthen its commitment to regularly update integrated social welfare data," said Smeru researcher Hastuti.

Because we do not want to take risks by deploying officers in the field, the officers eventually use available data.

Deputy assistant for social compensation at the Office of the Coordinating Minister for Human Development and Culture, Herbin Manihuruk, said knowledge of the health protocols to prevent Covid-19 pandemic was still limited. Because we do not want to take risks by deploying officers in the field, the officers eventually use available data.

However, in the following distribution of aid, the officers have initiated to do data verification or data updating.

"We are very open to this study. We still need information and recommendations so that the objective of the Covid-19 response assistance can really help alleviate poverty during the pandemic," Herbin said.

The government issued various national economic recovery policies during the Covid-19 pandemic. The various policies are the issuance of the Pre-Employment Card, the presidential assistance in the form of nine-basic necessities for Jakarta and surrounding areas, cash social assistance, direct cash assistance of village funds, provision of electricity incentives, the Family Hope Program and the nine-basic necessities aid program.