City to disburse part of Rp 73b fund to 267 subdistricts

JAKARTA (JP): The city administration will soon disburse part of the Rp 73 billion (US$7.3 million) budget allocated for its 267 subdistricts which are complaining of their inability to cover their operational costs, an official said on Monday.

Head of the city administration supervision division Koesnan A. Halim said the fund, which will be disbursed every quarter, would be used to pay the subdistricts' operational expenditures including telephone, electricity and water bills.

"The subdistricts should not worry as the fund will be disbursed at the end of this month," Koesnan told reporters.

He said some 70 percent of the Rp 73 billion fund would be disbursed equally among the 267 subdistricts, while the remaining 30 percent would be disbursed according to the size of each subdistrict.

Koesnan estimated that each subdistrict would receive between Rp 200 million and Rp 240 million this year, while last year they received an average of Rp 120 million.

The budget increase for the subdistricts is because the funds will also be used to pay the stipends of subdistrict councillors and the operational costs of the councils which will start their activities in April, he said.

But Koesnan did not specify the amount of the stipends to be paid to subdistrict councillors.

"Although the councils are funded by the city budget, they must have their own financial administration systems separate from ours," he said.

Subdistrict councils are new institutions designed to empower people at the grass-roots level in participating in the development of their respective communities, as well as controlling the activities of the subdistrict administrations.

City Bylaw No. 5/2000 on the establishment of the councils stipulates that a subdistrict councillor shall serve a five-year term. A council is made up of one representative from each Neighborhood Community (RW). Generally, one RW overseas 10 Neighborhood Units (RT).

Koesnan said the subdistrict budgets would also be used to pay the monthly wages of their security guards amounting to Rp 300,000 each. Previously, the security guards were not subsidized by the administration.

He said the city administration would only allow each of the subdistricts to hire 10 security guards (locally known as Hansip or civilian defense officers).

He said the city would also subsidize the payment of subdistrict employees' wages of Rp 100,000 per month each.

Koesnan said the Rp 73 billion fund for the subdistricts would be taken from the 2001 City Budget which amounted to Rp 7.49 trillion.

He dismissed the possibility that the subdistricts could not cover their operational costs.

"They know how to cover the costs," he said without giving further details.

Some subdistrict heads who asked for anonymity complained that they had yet to pay their electricity and telephone bills for January and February.

They said their subdistricts had made every effort to cover their operational costs which reached Rp 20 million a month per subdistrict, but without success.

"We hope the city administration will soon disburse the fund," one of the subdistrict heads said. (jun)