City draft budget still focuses on infrastructure

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.