Wed, 29 Nov 2000

City proposes Rp 7.49 trillion budget for 2001

JAKARTA (JP): Governor Sutiyoso unveiled on Tuesday an optimistic draft City budget for 2001, which was set at Rp 7.49 trillion (US$788.42 million).

Speaking before a plenary City Council session, Sutiyoso projected 2.91 percent in economic growth for the coming 12-month period as part of the economic upturn in the capital.

"The current indicators show that Jakarta's economy is improving. However, the size of the budget very much depends on the security situation in the capital," Sutiyoso told the session presided over by City Council Speaker Edy Waluyo.

The implementation of Law No. 25/1999 on the financial balance between the central and regional government will give the city a revenue windfall amounting to Rp 3.29 trillion.

The law stipulates that the city will earn half of the government revenue from land and building taxes, employees' income taxes and taxes imposed on the transfer of property ownership, which altogether will increase the city's revenue by nearly Rp 1.68 trillion.

The central government will also provide some Rp 1.515 trillion in a general allocation fund, which will be disbursed mostly to pay salaries of civil servants.

Sutiyoso said the city will increase original revenues coming from taxes imposed, among others, on the transfer of vehicle ownership and vehicle ownership taxes to Rp 3.05 trillion, or almost half of the total income.

In the 2000 budget that covers a nine-month period, taxes contributed some Rp 1.72 trillion to city revenue.

Sutiyoso said the hike was a logical result of the difference in the budget period, improvement in economic conditions and the booming purchase of imported cars.

The January-December 2001 budget will be the country's first calendar-year budget. The current April-December 2000 budget is a transitional one compared to previous fiscal years running from April 1 to March 31.


On spending, the city administration allocated some Rp 5.02 trillion for routine expenditure and the rest for developmental expenditure.

"The improvement of all city facilities and public services, the employment of 50,000 civil servants from the dissolved ministries and the plan to increase the allowances of all city employees will dominate the routine expenditure," Sutiyoso said.

He said the city will speed up the construction of two flyovers in Kalibata, South Jakarta, and Pramuka, East Jakarta, as well as reparation of some streets in the capital.

The city also plans to establish a bus lane in the capital's main thoroughfare and replace aging buses.

Another massive project set to begin late next year is the construction of a new intercity bus terminal in Pulo Gebang near Bekasi, West Java to replace the overcrowded Pulo Gadung terminal in East Jakarta. The new terminal will stand on a designated 10- hectare plot.

For the tripartite security system, the city allocated some Rp 82.69 billion. "Maintaining city security will also be one of our priorities," Sutiyoso said.

The councilors will respond to the proposal on Friday. (dja/07)