City enjoys budget surplus of Rp 1.68t in 2004

Damar Harsanto, The Jakarta Post, Jakarta

Governor Sutiyoso reported on Wednesday that the city administration recorded a surplus of Rp 1.68 trillion from its 2004 city budget owing to unrealized budget allocations and higher city revenue.

Sutiyoso blamed the unrealized budget expenditure that accounted for most of the surplus, or Rp 1.13 trillion, on lingering obstructions and delays in development projects, including land acquisition woes.

"In construction, we still face difficulties in acquiring land besides other problems with prevailing regulations," said Sutiyoso in a statement read out by Deputy Governor Fauzi Bowo during a plenary meeting with the City Council. The speech was part of Sutiyoso's accountability speech in the use of the 2004 city budget.

The development of the East Flood Canal project and Pulogebang bus terminal are among the projects bogged down by land acquisition problems. Negotiations between the administration and land owners have dragged on since land owners are demanding higher compensation than what the city administration is prepared to offer.

The administration has targeted Rp 12.67 trillion in budget expenditure, but in reality, it only managed to spend Rp 11.49 trillion, or 90.99 percent of its target.

Sutiyoso also said the surplus was brought about by higher city revenue.

"The city revenue in 2004 hovered at Rp 11.54 trillion, or 104.85 percent higher than the targeted Rp 11.01 trillion," Sutiyoso said.

Higher city revenue was recorded in tax collection, levies and contributions from city-owned companies and other income.

"Vehicle tax and vehicle ownership tax remain the biggest income earner for the city. Vehicle tax contributed Rp 1.69 trillion, slightly higher than the targeted Rp 1.65 trillion, while vehicle ownership tax delivered Rp 2.28 trillion, also higher than the targeted Rp 2.21 trillion," he said.

The administration also reported that as of December last year, Jakarta had an emergency fund of Rp 892.43 billion, thanks to an additional Rp 56.40 billion in interest.