Indonesian Political, Business & Finance News

Budget to be cut, council to react

| Source: JP
Budget to be cut, council to react

Ahmad Junaidi, The Jakarta Post, Jakarta

City councillors are likely to object to a proposed slash in
funds allocated to them in the 2003 city draft budget, after the
administration announced on Thursday that it would cut the funds
allocated to them in the budget.

Governor Sutiyoso said the administration would cut the
allocation of Rp 91.6 billion (US$10 million) for the city's 85
councillors in the draft budget.

"We should dare to say that (cut the allocation). The
councillors should have a conscience," Sutiyoso told reporters
after inspecting a budget meeting at City Hall.

Due to public criticism, the governor said he would also agree
to a reduction in the allocation of Rp 9 billion for him even
though the allocation had been arranged according to regulations.

"I have suggested that my subordinates cut some of the
allowances, such as for clothing and morning coffee, even though
my subordinates say it is my right as a governor according to
regulations," he said.

Meanwhile, City Secretary Ritola Tasmaya said allocations of
lesser importance were likely to be reduced.

"The amount for several items in the allocation of Rp 91.6
billion will be reduced, but I cannot mention the amount," Ritola
said.

Some Rp 42 billion of the Rp 91.6 billion draft budget is
allocated in the draft budget for the councillors' basic salaries
and transportation, Rp 1 billion for clothing, Rp 14 billion for
welfare and the balance for other allowances. If approved, every
councillor would be entitled a monthly income of Rp 90 million.

The 2003 draft budget also proposes Rp 9 billion for Sutiyoso,
including Rp 3 billion for the governor's social and
administrative activities, a Rp 100 million health allowance, Rp
90 million for morning coffee and Rp 65 million for clothing.

Separately, councillor Syamsidar Siregar of the National
Mandate Party claimed that she did not object to the
administration's plan to cut the allocation of Rp 91.6 billion
for councillors.

"In that case, we will cut allocation of funds for unclear
projects that are prone to corruption," Syamsidar, who is a
member of the council's Commission E for social welfare affairs,
said.

She asked the public not to question the allocation for
councillors since it was small compared to the total budget of Rp
11.05 trillion.

Anna Rudhiantina of Commission C for financial and budgetary
affairs said on Wednesday that budget allocations were the
prerogative of the council according to Law 22/1999 on regional
autonomy.

Anna, who is a Golkar councillor, claimed that government
regulation No. 110/2000, which puts a cap on councillors'
salaries, had been repealed as it was unlawful.

Activist Azas Tigor Nainggolan said that the absence of a
clear regulation enabled councillors and city officials to
capitalize on the budget.

"They can make deals that favor both councillors and city
administration officials. They do not think about the people,"
Tigor, chairman of the Jakarta Residents Forum, said.
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