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Indonesia's anti-poverty plans
Full of promise
Cutting fuel subsidies1 makes space for an ambitious income top-up scheme
BARACK OBAMA signed his health-care programme into law 427 days after taking office. Joko Widodo, Indonesia's president, took just two weeks to begin honouring his health-care and education promises. On November 3rd his government began issuing cards that will give poor Indonesians access to three programmes—two expanding publicly funded health care and education, and one giving cash handouts2 of 200,000 rupiah (15.75) per month. The income top-up scheme is planned eventually to cover 86.4m people in 15.5m households—a third of Indonesia's population. That would make it the largest such programme in the world.
Poor Indonesians were already eligible3 for various social programmes, including some scholarships and health care. But Jokowi, as he is known, has something his predecessors4 lacked: money. Like many countries, Indonesia has long wasted vast sums on subsidising fuel (see chart). But on January 1st Jokowi ended petrol subsidies, which will, according to the finance minister, save the government 200 trillion rupiah per year.
The income top-up is being described as cushioning the impact on consumers. But petrol subsidies benefited rich Indonesians most, since few poor ones own cars. The reality is that Jokowi seized the moment: the recent fall in the price of oil means Indonesia's newly unsubsidised petrol costs less than subsidised petrol did last month.
The finance minister's estimate of how much cutting fuel subsidies will save may be optimistic. And not all of the money freed up will go on social spending: more infrastructure5 investment is also expected. Nor will all those eligible be enrolled6 straight away. The plan is for 4.5m cards to be issued this year.
And details of how the programmes will work are as yet unclear. The plan is for the income top-ups to be collected using a mobile-phone SIM card at a bank branch or post office. Currently, recipients7 turn up at government offices and walk out with cash, which makes them vulnerable to crime and the system open to fraud and corruption8.
But banks and post offices are thin on the ground in remote regions. And supplying social services in an archipelagic country as vast and sprawling9 as Indonesia is also difficult. Promises of free health care mean little when clinics lack staff, equipment and medicine.
But as mayor of Solo, a city of 500,000 in Central Java, and then governor of the capital, Jakarta, Jokowi gained a reputation for competence10 and keeping his promises. Improving social services was one of his main campaign pledges.
In the long run, making Indonesians healthier and better educated will help them become more productive and richer. But the country's poverty line is 300,000 rupiah per person per month. Cash transfers of two-thirds that amount will lift millions above it.
1 subsidies | |
n.补贴,津贴,补助金( subsidy的名词复数 ) | |
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2 handouts | |
救济品( handout的名词复数 ); 施舍物; 印刷品; 讲义 | |
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3 eligible | |
adj.有条件被选中的;(尤指婚姻等)合适(意)的 | |
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4 predecessors | |
n.前任( predecessor的名词复数 );前辈;(被取代的)原有事物;前身 | |
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5 infrastructure | |
n.下部构造,下部组织,基础结构,基础设施 | |
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6 enrolled | |
adj.入学登记了的v.[亦作enrol]( enroll的过去式和过去分词 );登记,招收,使入伍(或入会、入学等),参加,成为成员;记入名册;卷起,包起 | |
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7 recipients | |
adj.接受的;受领的;容纳的;愿意接受的n.收件人;接受者;受领者;接受器 | |
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8 corruption | |
n.腐败,堕落,贪污 | |
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9 sprawling | |
adj.蔓生的,不规则地伸展的v.伸开四肢坐[躺]( sprawl的现在分词 );蔓延;杂乱无序地拓展;四肢伸展坐着(或躺着) | |
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10 competence | |
n.能力,胜任,称职 | |
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