Balikpapan works to cut poverty

Nurni Sulaiman, The Jakarta Post, Balikpapan

Balikpapan has been aggressively working on poverty alleviation over the last two years, evident from the implementation of four programs, education, health care, human resources trainings and micro-credit loans.

The municipality has even earmarked 2.5 percent from its budget for poverty alleviation.

Data in 2005 recorded 27,859 low income families in Balikpapan. Of those, 7,650 had received assistance as of December 2007.

"The number of new households considered poor, however, increased by 7,869 in 2007, corresponding to 28,039 poor people out of a total population of 577,675 as of December 2007.

"However, thanks to the four programs, we are positive the poverty alleviation program in Balikpapan will remain positive and in line with the target," Balikpapan Development Planning Board's People's Welfare and Population division head Abdul Kadir Cawidu told The Jakarta Post recently.

The higher figure, said Kadir, represented the twice-yearly addition to the list of poor families having resided in the city for at least two years.

In the poverty alleviation program, the Balikpapan municipality has exempted needy students from paying school fees from elementary school to university.

"Apart from the fee exemption, we will also provide uniforms and textbooks," said Kadir.

In annual scholarship funds the administration will make available Rp 500,000 (US$55.00) per elementary student, with junior high students receiving Rp 700,000, high school students Rp 1 million and college students Rp 2 million. The grants will be made in two annual disbursements.

In the health sector, low income families will receive health insurance entitling them to free medical and inpatient treatment at hospitals, equivalent to third class treatment.

"The municipality will also empower the poor by providing trainings, such as on hairdressing, automotive repair and sewing, according to their interests.

"We also provide them with Rp 5 million in micro-credit loans to each resourceful group comprising of five persons," said Kadir.

Balikpapan Mayor Imdaad Hamid expected the four programs would enhance the city's poverty alleviation program and projected there would be no poor people in the city by 2015.

Balikpapan's city revenue reached Rp 92.8 billion in 2007 and it obtained Rp 756.3 billion in fiscal balance.

It's revenue this year is expected to reach Rp 84.8 billion and Rp 934.2 billion in fiscal balance.