City recovery program funds too small, say councillors<\/p>\n
Ahmad Junaidi, The Jakarta Post, Jakarta<\/p>\n
The allocation of Rp 456.59 billion for the economic sector in
\nthe 2003 draft city budget was too small and would not help to
\nrevive the Jakarta economy, councillors said on Wednesday.<\/p>\n
\"The amount is not proportional. It will not support the
\ncity's priority plans for this year's economic recovery program,\"
\ncouncillor A. Rahman of the council's Commission D for
\ndevelopment affairs said.<\/p>\n
With revenues standing at Rp 8.89 trillion, mostly contributed
\nby taxpayers, Rahman of the United Development Party (PPP) viewed
\nthe Rp 456.59 billion allocation as being too small.<\/p>\n
He questioned what he described as the inadequate allocation
\nfor small and medium enterprises (SMEs), which amounted to about
\nRp 26 billion compared to an allocation of Rp 136 billion for
\npublic order officers.<\/p>\n
\"Our faction will demand that the city allocate more funds to
\nencourage economic activities,\" said Rahman, who is a former
\nexecutive of city-owned developer PT Pembangunan Jaya Ancol.<\/p>\n
City Governor Sutiyoso officially submitted the draft budget,
\nwhich amounts to Rp 11.05 trillion, to the City Council on
\nTuesday evening.<\/p>\n
According to the draft, Rp 456.59 billion will be used to
\nfinance the development of fish market facilities in Muara Angke,
\nNorth Jakarta, the management of street traders and SMEs, and
\ndomestic and international tourist, industry, trade and
\ninvestment promotions.<\/p>\n
The 2003 Annual Jakarta Development Plan (Repetada) did not
\nmention any incentives for encouraging business, besides programs
\nsuch as the renovation of industry and trade offices and the
\nconstruction of a trade promotion building in Klender, East
\nJakarta.<\/p>\n
Councillor Dani Anwar of the Justice Party supported Rahman,
\nsaying that the city was not serious about the economic recovery
\nprogram.<\/p>\n
\"What can you expect regarding economic recovery with this
\ntype of money,\" asked Dani, who is the secretary of the council's
\nCommission C for economic affairs.<\/p>\n
He said his faction would urge the administration to allocate
\nmore money for recovery programs.<\/p>\n
But Ritola Tasmaya, the city secretary, said that the funds
\nfor the recovery program amounted to more than the Rp 456.59
\nbillion as there were other development funds allocated to each
\nof the agencies involved in helping restore the city's economy.<\/p>\n
The Rp 11.05 trillion budget was made up of vehicle tax of Rp
\n2.7 trillion, hotel and restaurant tax of Rp 528 billion and
\nentertainment tax of Rp 20 billion.<\/p>\n
The budget was also aided by revenue-sharing with the central
\ngovernment with Rp 3 trillion coming from property and income
\ntaxes and Rp 901 billion from the General Allocation Fund (DAU).<\/p>\n
As this year's forecast revenue will only amount to Rp 8.89
\ntrillion out of the overall budget of Rp 11.05 trillion, the
\ndeficit would be financed by unspent funds amounting to Rp 2.2
\ntrillion from last year's budget.<\/p>\n
Many observers criticized the administration for raising the
\nbudget to Rp 11.05 trillion from last year's Rp 9.7 trillion
\ngiven that it had not been able to use Rp 2.2 trillion from last
\nyear's budget.<\/p>\n
In order to reach it's revenue target, the administration
\nincreased vehicle tax from 1 percent to 1.5 percent of vehicle
\nsale value.<\/p>\n
It also increased the property tax last year by between 100
\npercent and 300 percent, depending on the location of the
\nproperty.<\/p>\n
The administration has repeatedly said that the tax increases
\nwere necessary under central government regulations. It earlier
\nsaid that vehicle and property tax formulae were applied
\nuniformly across the country.<\/p>",
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