Councillors question budget revision
Bambang Nurbianto, Jakarta
Construction of two new busway corridors could come to a halt should the majority of Jakarta councillors reject the city administration's proposal to use some of the Rp 863.52 billion in reserve funds to finance the project.
During opening talks on Saturday and Sunday between city officials and the council's budgetary committee to discuss revisions to the city budget, several councillors questioned the urgency of the project.
"I cannot agree with the plan to use reserve funds to finance a commercial project such as the busway expansion," committee member Syamsidar Siregar told The Jakarta Post on Sunday.
"The reserve funds should only be used for emergencies such as helping victims of disasters -- floods, fires or disease outbreaks."
The marathon talks were the first on the city's request to use Rp 240 billion of reserves funds to beef up its Rp 571.86 billion additional budget. The additional budget would increase the approved 2004 city budget from Rp 12.25 trillion to Rp 12.83 trillion.
Although the budgetary committee does not have the authority to make changes to the proposed budget revision, it could add a footnote indicating its opposition to the use of reserve funds for subsequent meetings with other council members.
According to the head of the City Planning Agency, Achmad Harjadi, Rp 52 billion of the proposed Rp 240 billion in reserve funds would be used to construct two new busway corridors and to improve services along the existing busway route between Blok M, South Jakarta, and Kota, West Jakarta.
The new corridors, on which construction began in June, were expected to be operational next year.
Harjadi said another Rp 100 billion would be used to purchase land for the East Flood Canal project, while the remaining funds would pay to renovate several schools.
The chairwoman of the council's Commission C overseeing financial affairs, Anna Rudhiantana, is also taking a cautious approach to the administration's proposed budget revision.
She cited Bylaw No. 10/1999 on city reserve funds, which states that the funds must be used for situations of force majeure or to finance unfinished projects. In times of emergency, the governor can use the funds without having to obtain the council's approval.
"If the administration wants to use the funds for unfinished projects, the governor should first make a detailed report on the projects to the council. Regarding the busway project, we have yet to see such a report, if there is one," she told the Post.
The city administration has said the main source for the additional funds would come from an expected increase in revenue from vehicle taxes and transfer of vehicle ownership taxes.
Council deputy chairman Ibnu Sumantri said the council had to finish the discussions on the proposal before it ended its term on Aug. 25.
I-Box
Proposed city budget revision for 2004 fiscal year (in rupiah)
No. Explanation Approved budget Revision
1. Revenue 10,003,671,647,000 10,961,471,647,000
2. Spending 12,203,345,734,000 12,775,208,846,000
-------------------------------------------
Deficit/ 2,199,674,087,000 1,858,737,199,000
surplus
3. Financing
- Surplus 2,24,944,087,000 1,664,007,199,000
in 2003
- Reserve 240,000,000,000
funds
- Spending 55,270,000,000 55,270,000,000
Total budget 12,258,615,734,000 12,830,478,846,000
Source: Jakarta administration