Indonesian Political, Business & Finance News

Billions in public money idle in bank

| Source: JP

Billions in public money idle in bank

Evi Mariani, The Jakarta Post, Jakarta

Billions of rupiah in change from traffic fines remain idle at a
state bank, as most people have been reluctant to go to court
over traffic tickets and preferred to pay out-of-court
settlements.

"I went to a trial once and it made me tired because of the
long queue. So the next time ... I paid the Rp 40,000 (US$4.40)
fine to Jakarta Police Headquarters and let them handle the
rest," Ronald, not his real name, told The Jakarta Post on
Tuesday.

At headquarters, he said, the officers in charge showed him a
table of violations and the estimated fines. "I knew the court
would hand down a much lower fine, but I didn't want to go to
court."

The police take the payment and ticket for processing at
court, which usually determines a lower fine.

What Ronald did not realize was that the change from the
estimated out-of-court fines and the fine as determined by the
court went into an account in Bank Rakyat Indonesia (BRI); nor
did he have any idea that billions of rupiah had accumulated in
the account since 1997, when the out-of-court traffic fine was
implemented.

"If that's the case, the money can go to the policemen, who
deserve it. They work hard to direct traffic," he said.

However, not all people share Ronald's opinion.

"The government should tell the public about this account --
how much money is in it and how much of it is owed (in change) to
violators," said Arif Nur Alam, a coordinator of Indonesian Forum
for Budget Transparency (Fitra).

He suggested that the government open a hotline or conduct a
public survey so the people could decide what to do with the
money. "Certainly, the money should be used for programs that
support public interests. But let the public decide."

Police Staff College (PTIK) Governor Insp. Gen. Farouk
Muhammad had suggested earlier that the money be used to improve
the traffic ticketing system.

"We estimate that the account holds billions of rupiah,
millions of which belong to violators. Why don't we use it to
make the system more efficient," Farouk said.

At a seminar last week, he unveiled an idea to set up a system
under which violators could pay fines through automatic teller
machines (ATM).

"The police would not need to confiscate their driver's
license or vehicle registration. If the violator does not pay by
the deadline, the police will temporarily suspend the license and
registration," he said.

Farouk added the violator would be required to select an
option on the ticket as to how they wanted their change handled.

"For example, the money could be used toward certain public
facilities," he said. "They can also take the change, if they
prefer."

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