Rp30 Trillion Needed To Eliminate Poverty In NTT

Kupang, E Nusa Tenggara, Aug 29 (ANTARA) - East Nusa Tenggara (NTT) needs an additional fund of Rp30 trillion to eliminate poverty in 20 backward regencies in that province, a leading local economist said. Dr Thomas Ola Langoday from the Catholic University of Widya Mandira Kupang, said each of the 20 backward regencies would need around Rp150 billion. The central government provided what is called special allocation fund (DAK) for backward areas , the dean of the economic faculty of the university said commenting on additional funds for DAK proposed by the government in its draft budget for 2013. State Minister for Development of Backward Areas Helmy Faishal Zaini has proposed allocation of Rp70 billion for each regency categorized as backward area, Dr Thomas said . The allocation set for 2013 is higher than Rp40 billion for 2012, or almost two times larger, he said here on Wednesday. Helmy said the amount was smaller than Rp100 billion he originally proposed , but the government decided to provide only Rp70 billion. Thomas said additional fund in DAK is expected to help accelerate development of backward areas in NTT. The country has 183 regencies categorized as backward areas and the 20 regencies in NTT need larger fund allocation because of its geographical condition, he said. The condition in NTT is worse because of the difficulty in reaching some of the areas spread in various small islands, he said. He said around 70 percent of the country`s 183 backward regencies are in the eastern part of the country. The government, therefore, needs to give priority in economic development to the region , he said. The condition is not fair as the disparity of prices of essential goods is high between Java and Sumatra and interior areas in eastern part of the country including Papua, Sulawesi, Maluku, and NTT, he said. He cited the prices of oil fuels, building materials and foodstuff are more than twice higher in eastern Indonesia compared with the prices in Java and Sumatra. Worse still is that the income of the people in the backward areas is much lower that poverty has spread widely in that region, he said. He acknowledged that the problem could not be solved in short term . He appreciated an initiative taken by the minister in charge of development of backward area in launching what is called CSR "corporate social responsibility" (CSR) in cooperation with big companies and banks like Pertamina, BRI, Bank Mandiri, Sidomuncul, etc. There are around 20 companies taking part in the CSR program to develop backward areas in various parts of the country. The number is expected to increase in the future.