City draft budget still focuses on infrastructure
Bambang Nurbianto, The Jakarta Post, Jakarta
Jakartans can expect to see plenty of construction in the city next year, particularly with a number of development projects stalled by the late disbursement of budgetary funds this year scheduled for completion.
Governor Sutiyoso's administration completed on Monday the 2006 draft budget, which totals Rp 17.51 trillion (US$1.75 billion), or 24.95 percent higher than the 2005 budget.
In the 2006 draft budget, the administration assumes economic growth of 6.13 percent, as compared to 5.2 percent this year, 9 percent inflation compared to some 17 percent this year, and an average exchange rate of Rp 9,900 to the US dollar.
The administration allotted Rp 4.58 trillion, or 25 percent of the total budget, for urban infrastructure development.
The infrastructure sector received some Rp 3.5 trillion in the 2005 budget.
If the budget proposal is approved by the City Council, some Rp 1.18 trillion would be allocated for transportation projects, including four new busway corridors, subway construction and the construction of overpasses and underpasses.
"We need to improve our transportation system so that we will be able to gradually resolve transportation problems in the city," Sutiyoso said after presenting the draft budget to the City Council.
The four new busway corridors are from Pulogadung in East Jakarta to the Hotel Indonesia traffic circle in Central Jakarta; from Kampung Melayu in East Jakarta to Ancol in North Jakarta; from Ragunan in South Jakarta to Jl. Imam Bonjol in Central Jakarta; and from Kampung Rambutan in East Jakarta to Kampung Melayu.
Currently, there is one operating busway corridor in the city, from Blok M in South Jakarta to Kota in West Jakarta.
The city has faced a lot of criticism for its transportation problems, which include acute traffic jams and poor public transportation.
The 2006 budget draft also allocates Rp 135 billion for preparations for the construction of a subway from the National Monument (Monas) park in Central Jakarta to the Lebak Bulus bus terminal in South Jakarta.
The actual subway construction would be the responsibility of the central government, while the Jakarta administration would acquire the land affected by the project and deal with rerouting traffic before and during the construction, which could begin next year and would be expected to take three years.
Other infrastructure projects include land acquisition for the construction of flood canals, river dredging, port construction, the development of low-cost apartments and the renovation/construction of school buildings.
For the administrative sector, the draft budget allocates Rp 4.93 trillion next year, or 51.2 percent more than the current budget. The extra money would be used to give raises to civil servants and to improve public services in the city's 44 districts and 267 subdistricts.
Deputy Governor Fauzi Bowo said the administration planned to increase the monthly living allowances of civil servants to Rp 2 million from the current Rp 1 million, which comes on top of their basic salaries.
The administration also proposed Rp 4.62 trillion, or 12.95 percent more than in the 2005 budget, for the education and health sector.