JP\/14\/dpd<\/p>\n
DPD proposes 'more realistic' budget to govt, House<\/p>\n
The Jakarta Post
\nJakarta<\/p>\n
The Regional Representatives Council (DPD) is urging the
\ngovernment to be more realistic in its assumptions for the 2005
\nstate budget revision, and to allocate more funds for social and
\nregional development.<\/p>\n
In a written statement it had submitted to the House of
\nRepresentatives earlier this week on the matter, the DPD
\nrecommended the government set the inflation rate at 9 percent,
\non the basis of a rupiah exchange rate at Rp 9,200 against the
\nU.S. dollar and oil price of $40 per barrel.<\/p>\n
"These figures are based on conditions during this year's
\nfirst quarter," the report said.<\/p>\n
"The rupiah has remained at the level of around Rp 9,500 a
\ndollar, while global oil prices remain around $45 per barrel."<\/p>\n
The Council, however, concurred with the government's
\nestimation that the economy would be able to grow by up to 5.5
\npercent this year, and that the country would be able to produce
\nan average of 1.125 million barrels of oil per day.<\/p>\n
The government is currently in talks with the House of
\nRepresentatives' Budget Commission to revise this year's state
\nbudget, taking into account the recent rise of inflation, soaring
\nglobal oil prices and a weakening rupiah.<\/p>\n
Under the Constitution, the DPD has the right to make
\nrecommendations to the House over the deliberation of any laws
\nrelated to the budget, taxation policies, education and religious
\naffairs.<\/p>\n
The recommendations come at a time when Bank Indonesia is also
\nseeing the rupiah exchange rate settling somewhere between Rp
\n9,000 and Rp 9,300 per dollar, and the inflation rate reaching 8
\npercent. The House's Commission VII for energy affairs had also
\nrecommended to the Budget Commission of an oil price of between
\n$40 and $45 per barrel.<\/p>\n
The government has upgraded the rupiah exchange rate to Rp
\n8,900 per dollar from a previous Rp 8,600, and the inflation rate
\nto 7 percent from 5.5 percent.<\/p>\n
With the assumptions it is recommending, the DPD said, the
\ngovernment would be able to receive additional revenue of up to
\nRp 54.7 trillion (some $5.7 billion) -- totaling Rp 492.8
\ntrillion -- from an increase in oil and gas revenues.<\/p>\n
The DPD has therefore recommended that the government increase
\nits allocation for education, health and poverty alleviation
\nprograms. "The government should increase the Rp 4.1 trillion it
\nhas allocated for educational scholarships this year, to be able
\nto fulfill the 20 percent budget allocation for the country's
\neducation sector as stipulated in the Constitution," the DPD
\nsaid.<\/p>\n
"The government should also adjust the budget allocation to
\nthe provinces, which is currently only at Rp 40 trillion."<\/p>\n
----------------------------------------------------------------<\/p>\n
2005 Budget DPD<\/p>\n
State Budget Revision recommendations
\n----------------------------------------------------------------
\nEconomic growth (%) 5.4 5.5 5.5
\nInflation (%) 5.5 7 9
\nRupiah rate (Rp\/$) 8,600 8,900 9,200
\nOil price ($\/barrel) 24 35 40
\nOil production (mbpd) 1.125 1.125 1.125
\n----------------------------------------------------------------
\nSource: Regional Representative Council<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jp14dpd-1447899208",
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