"Poverty could not be eradicated only through charity as it is also related to employment."Jakarta (ANTARA News) - Coordinating minister for economic affairs Hatta Rajasa has called for the improvement of social security spending to curb the poverty rate recorded at 11.6 percent until September 2012.
"The allocation of budget now spreads to many social security programs but its effectiveness is low," he said here on Wednesday.
He said the government has budgeted a lot of funds at ministries for social security spending to overcome poverty but some of the efforts have not been effective.
"It is not impossible for a project to be carried out by several ministries causing ineffective distribution of the funds," he said.
Hatta said efforts to alleviate poverty could be done not only through provision of subsidies or social charity but also through provision of jobs.
"Poverty could not be eradicated only through charity as it is also related to employment," he said.
With regard to poverty reduction efforts so far which have not been able to reduce the rate to a range of 10.5 to 11.5 percent the minister said it was because of the revision of the economic growth target for 2012 due to a global economic crisis.
"Our baseline was 11.5 percent which was set based on the assumed economic growth of 6.5 percent but the economic growth target was later revised down to 6.3 percent due to external problems," he said.
Hatta however expressed optimism the 11.5 percent target could still be achieved as investment still continued to grow while the government`s scholarship program has been running well.
"We still have October, November and December to achieve it. There is still time for it. I am optimistic the 11.5 percent target could be met," he said.
(Uu.H-YH/B003)
Editor: Priyambodo RH
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