'MAGIC CARDS' PROGRAM CAN GET FUNDING FROM STATE FIRMS

By Andi Abdussalam

Jakarta, Nov 21 (Antara) - The 'magic cards' program aimed at improving poor people's purchasing power, education and health services can be funded by state companies (BUMN) through their Partnership and Environmental Program (PKBL), according to an academic.          "The government can use the PKBL funds of state-owned enterprises, but not their Corporate Social Responsibility (CSR) funds," Maria R Nindita Rayati, director of the MM CSR of the University of Trisakti, said on Thursday.          The government has launched what it calls a 'magic cards' program, comprising the Indonesia Health Card (KIS), Family Welfare Card (KKS), and Indonesia Smart Card (KIP) for the poor. However, many quarters, including politicians, have questioned the legal basis of the program's funding.         Minister/State Secretary Pratikno has stated that the government will use the BUMN's CSR funds to finance the KIS, KIP, and KKS schemes, and will not touch the state budget for the purpose, so it does not require the approval of Parliament.           "The funds are from the CSR program of State-Owned Enterprises. As they (the programs) do not rely on state budget, there is no need to complain," Pratikno noted early this month.         The Chief of the central executive board of the National Mandate Party, Saleh Partaonan Daulay, has questioned the legal basis of the recent launch of the magic cards program.         According to him, the government could reallocate budget funds to finance the three programs with prior consent from the House of Representatives (DPR). "But, when did the government discuss the issue with the DPR? As far as I know, the matter has not been discussed in the DPR," he remarked.         Minister Pratikno pointed out the government is not required to seek the House's approval, as the program depends on the BUMN's CSR funds, not state budget.         However, according to Maria, the government should not use the CSR funds to finance its magic cards program as it is against the CSR rules.         "The funds for the KIS, KIP, and KKS programs should be taken from the PKBL program of state companies. It should not be taken from the CSR program," Maria emphasized.         She remarked that for financing the three cards program, the government should use the PKBL funds, which are allocated from a part of the profits earned by state-owned companies as stipulated in Government Regulation No.5/MBU/2007 on the partnership program between the BUMN and small scale businesses and the environmental development program.         "The BUMN must allocate four percent of their profit, of which two percent are for the partnership program (PK) and the other two percent are for the environmental program (BL)," she added.         Maria observed that the government as a shareholder had the right to use some of the profits for the welfare of the people. Hence, the PKBL should be used for improving the welfare of the people.         "Therefore, the people have the right to hold the government accountable for the use of the PKBL funds for the KIS, KIP and KKS programs," she added.         Maria said it would be better for the government to use the environmental program (BL) funds for the card programs. This is because the BL program is related to health, education, and the people's prosperity while the partnership program (PK) funds are to be used for improving the capacity of small-scale businesses.         Last week, Social Affairs Minister Khofifah Indar Parawansa noted that the "magic cards" were funded by the state budget. "The cards are funded by the Corporate Social Responsibility program," Parawansa stated last Saturday (Nov. 8).         She observed the programs were disputed by the legislature. "So, the cards were implemented using funds from the 2014 state budget. They have been approved by the House (DPR). If you want to know the budget of the KIS, you can check with the Ministry of Health, while the Ministry of Education can give you the details of the budget for the KIP," Parawansa affirmed.         Parawansa further noted that even though the KKS program was related to social affairs, it required Rp6.4 trillion from the State General Treasury. Of the total funds, some Rp6.2 trillion was utilized to print the cards and Rp199 billion was spent on their distribution.         "The budget for 2015 has yet to be finalized. I think it will be discussed soon," she added.          In the meantime, constitutional law expert Yusril Ihza Mahendra pointed out that the BUMN companies did have an obligation to allocate their CSR funds and fulfill their responsibility towards the communities settled in their vicinity.           If the government is willing to take the CSR funds, then the law on state budget, particularly with regard to the sources of state revenue and its allocation, must first be amended.          "The CSR fund is funds allocated from the profits of companies, including the BUMNs, as compensation to the people living in the surrounding areas who might be affected by the companies' activities," he said.           So, Yusril noted, if the government uses the CSR to fund its card programs, it might create a problem.***3*** (T.A014/INE) EDITED BY INE (H-YH)              (T.A014/A/BESSR/A/Yosep) 21-11-2014 17:47: