Indonesian Political, Business & Finance News

City cuts funds to branches of political parties

| Source: JP

City cuts funds to branches of political parties

JAKARTA (JP): The branch offices of Golkar and two other
political parties -- the United Development Party (PPP) and
Indonesian Democratic Party (PDI) -- have agreed to the
cancelation of their grants from the city administration budget
this year.

All three have agreed to let the administration temporarily
freeze its annual assistance, which is usually used to finance
the organizations' activities, for the sake of efficiency.

Tadjus Sobirin of Golkar said his organization was ready to
sacrifice the funds for the benefit of the people.

"Golkar is ready and certainly understands why the
administration has to scrap the grant for us. It's better to give
the money to the hungry and poor people," he told reporters
Thursday.

Tadjus said he had no idea of the amount of money in the
administration's budget for the 1998/1999 fiscal year for the
political groups.

"If it has to be canceled, then go ahead," he added.

Official data shows that the funds allocated for the three
organizations, including their branches in the five mayoralties,
are Rp 1.08 billion, down from the 1997/1998 fiscal year's budget
of Rp 4.95 billion.

Rusdji Hamka of PPP said that the reduction or even
cancellation of the funds during this time of crisis was
completely logical.

"I don't think there will be any problem with that. The
administration has no money, while there are many other things
which still badly need the funds," he said.

Elishman Iljas, another PPP representative on the council,
said that the parties usually received the funds in stages.

"For the 1997/1998 fiscal year, PPP received Rp 250 million
every three months," he said.

The funds were used to cover the party's programs and other
expenses, including electricity and telephone bills and
employees' salaries, Elishman said.

"We haven't received any funds for this year's budget. They
were usually delivered in June," he added.

Lukman F. Mokoginta of PDI said his party was in total
agreement with giving up the funds for the administration's other
needs.

He said PDI received Rp 7 million each month since the middle
of last year plus Rp 250 million for three months during the
election period.

"No problem. We'll get donations from PDI supporters to
survive. It's not fair to depend on the administration to support
us," he said.

Deputy governor for finance affairs Harun Al Rasyid hailed the
three organizations' statements.

The administration had not planned to scrap the grants
completely, he said without giving details.

"But if they do not have any problem with their funds being
reduced or even canceled, then all I can say is Alhamdulillah
(Praise God)," Harun said.

He said the reduction of the administration's spending would
likely continue in line with its effort to survive on its Rp 1.3
trillion budget. (cst)

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