Govt urged to include tariff policy in budget<\/p>\n
JAKARTA (JP): The government should include proposed utility
\ncharges in the draft state budget, members of the House of
\nRepresentatives said yesterday.<\/p>\n
Tadjuddin Noer Said, a member of the House Budgetary
\nCommission from the dominant Golkar faction said such a procedure
\nwas important to ensure the tariffing was fair and reasonable.<\/p>\n
If the charges stated in the budget were approved by the
\nHouse, the government should not be allowed to change them until
\nthe following fiscal year, he said.<\/p>\n
"If the government plans to adjust the tariffs, it should wait
\nuntil the next budget year," he said when commenting on the
\ngovernment's 1997\/1998 draft budget.<\/p>\n
He said that it was now time for the government to adopt such
\na policy to create stability in the economy and to guarantee that
\nany increases are made for the benefit of the economy and the
\npeople.<\/p>\n
"The government's tariff policy is currently uncertain. Today
\nit announces an increase in telephone charges, for example.
\nAnother day it will announce an increase in pure water tariffs,
\nor electricity or maybe fuel oil," he said.<\/p>\n
"Why doesn't the government integrate these announcements and
\nconfine them to when the President unveils the draft state
\nbudget?" he suggested.<\/p>\n
On the country's balance of payments, Hamzah Haz, a member of
\nthe Budgetary Commission from the United Development Party, said
\nthat the government's decision to focus on reducing the current
\naccount deficit is the right step to take.<\/p>\n
"The deficit has become a structural problem that needs a
\ncomprehensive solution," he said.<\/p>\n
He cited that most of the deficit was contributed by the
\nservices sector, particularly transportation. "We need to conduct
\na comprehensive study of the problem so that we can take the
\nright steps to tackle it," he said.<\/p>\n
He suggested that the government should further deregulate the
\nshipping sector with a view to reducing the current account
\ndeficit in the sector.<\/p>\n
He also criticized the export and import scheme which did not
\nfavor Indonesia. "Currently, the export and import scheme is to
\nIndonesia's disadvantage. If we export our products, we can only
\nget payments based on F.O.B (freight on board), but if we import
\nforeign goods we have to pay the costs up to the latest
\ndestination," he said.<\/p>\n
Commenting on the government's rural electrification program
\nin 1997\/1998, Iskandar Mandji, a Golkar member of House
\nCommission VI for industry, mining, manpower and investment said
\nthat it should be accompanied by an industrialization program in
\nrural areas to prevent villagers becoming too consumerist.<\/p>\n
Simon P. Morin, a Golkar member of House Commission VII for
\nfinance, trade and cooperatives, urged the government not to
\nfocus only on the most developed areas in western Indonesia but
\nto expand development activities in the least developed areas in
\nthe eastern provinces.<\/p>\n
"This is one way to arrest the widening economic gap between
\nthe western and eastern parts of Indonesia," he said, adding that
\nbesides improving infrastructure, the government should also give
\nspecial treatment to private investors in the eastern part of
\nIndonesia.<\/p>\n
A.A. Baramuli, another Golkar member of House Commission VII,
\nsaid he was concerned about the increase of civil servant
\nspending from Rp 27 trillion (US$11.6 billion) this fiscal year
\nto Rp 32 trillion during the next fiscal year.<\/p>\n
"The Rp 32 trillion is almost 30 percent of the total state
\nbudget. We're very concerned about this, particularly if we
\ncompare it with the development budget of Rp 38 trillion. Don't
\ntell me that all the funds will be used for routine spending," he
\nsaid. (bnt\/pwn)<\/p>",
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