“So it is only helpful, it is not compensation, so it does not necessarily cover all losses suffered by farmers due to crop failures,” said Vice Minister of Agriculture Krisnamurthi in Jakarta.
According to Bayu, the total value of cash assistance that the government is prepared to Rp 2 million. This is a fiscal reserve fund earmarked for emergencies only in the Budget 2011.
“So this is a fund which we hope will never be used, just in case. Dana Rp 2 million is only for budgetary assistance tunainya only, while fertilizer and seed aid is allocated from a separate budget,” he said.
The legal basis for the distribution of cash assistance is defined in a presidential instruction (Instruction) that have been finalized, just waiting for the signature of the president. The mechanism is that each local government should report a failed harvest in the region to the central government.
“So the level that oversee and to clarify the occurrence of puso. We have not determined the amount of compensation. What is clear is not necessarily equal to the BLT (direct cash assistance ever delivered in 2006 as a cushion to maintain the purchasing power of public pressure due to fuel price hikes in 2005), “Bayu said.