"We are now at the end of August and in the coming one or two months the team is expected to be working and finish its work this year. We hope that all would have been settled (early) in 2012," Finance Ministry Secretary General Mulia P Nasution said.
He said that not all farmers would have their credits written off because all must pass through a verification process, after all the credits had been held for a long time by the debtors.
"We have to verify it because it has been there for a long time.We have see to it in the banks` books and audit and verify it one by one before it could be proposed to be written off," the finance ministry secretary general said.
Mulia said that it had been Bank Indonesia and the government`s commitment to assisting farmers, particularly those in Yogyakarta, so that they would be bankable again and bank would channel KUT credits without the burden of bad credits.
However, he said, not all farmers would get such a privilege to avoid moral hazard, especially debtors who were still able to pay their debts.
"It is a problem that has been accumulated. While one problem is not yet settled than an earthquake happens again. There should be no moral hazard. Those who so far are able to pay will not get the incentive," he said.
In the meantime, Chairman of the House`s Budgetary Body Melchias Markus Mekeng said the writing off of the KUT loans could be done by the government it the credits had passed the auditing process of the State Audit Board (BPK).
"So, writing off could not be carried out in such away without the passing through the auditing of the BPK," he said.
(Uu.A014/HAJM/F001)
Editor: Priyambodo RH
Copyright © ANTARA 2011
